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DEPARTMENT OF COMMERCE 

BUREAU OF FOREIGN AND DOMESTIC COMMERCE 

FT MEADE 


GenCoII 


SPECIAL AGENTS SERIES—No. 172 


ELECTRICAL GOODS IN CHINA, 
JAPAN, AND VLADIVOSTOK 


R. A. LUNDQUIST 


Trade Commissioner 



| PRICE, 30 CENTS 

Sold by the Superintendent of Documents, Government Printing Ofiice 
Washington, D. C. 


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GOVERNMENT PRINTING OFFICE 

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CONTENTS 



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Page. 

Letter of submittal. 7 

China. 9 

Introduction. 9 

General information on China. 12 

Climatic conditions. 13 

Population and living conditions. 14 

Chinese dialects and the written language. 15 

Educational facilities. 16 

Principal cities and treaty ports. 17 

Weights and measures—Postal facilities. 24 

Agriculture. 25 

Mining. 26 

Timber resources. 28 

Manufacturing. 28 

Transportation facilities. 29 

Ocean freight service. 34 

Analysis of Chinese market for electrical goods. 35 

Foreign trade in electrical goods. 35 

Central-station development factors. 37 

Central-station engineering and commercial practice. 39 

Central-station management and rates. 41 

Boiler plant, stokers, pumps, etc... 42 

Steam turbines. 43 

Steam engines. 45 

Crude-oil engines. 45 

Gas-producer plants. 48 

Water wheels... 48 

Generators, switchboards, and switch gear. 49 

Transmission and distribution equipment—Distribution practice. 51 

Underground cable. t ,...... 52 

Bare and weatherproof wire—Poles and towers. 53 

Cross arms, insulators, and pins—Line hardware. 54 

Transformers. 56 

Street-lighting fixtures. 57 

Motors and controlling apparatus. 58 

Electric-railway equipment. 61 

Meters and testing instruments. 62 

Lamps. 65 

Batteries. 67 

Electric vehicles—Farm-lighting plants. 69 

Telephone equipment. 71 

Telegraph equipment. 74 

Wiring supplies and lighting fixtures..•. 75 

Electric ranges and other heating devices. 81 

Fans and other domestic and office appliances. 82 

Medical and dental apparatus. 84 

Other electrical equipment. 84 

Conduct of trade with China. 85 

Currency and foreign exchange. 85 

Customs tariff. 88 

Trade-mark situation. 90 

Selling methods in Chinese electrical trade. 91 

Influence of education on sales. 95 

Banking facilities—Terms and methods of payment. 96 

Display samples. 98 

Complaints against American goods and methods. 99 

Making goods to meet China’s needs. 100 

Representation in China. 101 

Publicity for electrical goods... 107 

Packing American electrical goods for China. 108 


3 































































4 


CONTENTS. 


Page. 

Japan. Ill 

Introduction... Ill 

General information on Japan. 112 

Area and population. 112 

Physical and climatic conditions. 113 

Living conditions and emigration. 113 

Principal business centers. 114 

Agriculture. 117 

Mining.. 117 

Industrial development. 118 

Transportation facilities. 124 

Electrical development in Japan. 126 

Electrical systems in operation. 126 

Light and power rates in Tokyo. 129 

Electric railways—Telephone and telegraph systems. 131 

Analysis of Japanese market for electrical goods. 133 

Imports of electrical goods. 133 

Boilers, stokers, etc. 136 

Engines. 137 

Waterwheels. 138 

Generators, switchboards, and switch gear. 139 

Transmission and distribution equipment. 140 

Motors and controlling devices. 141 

Electric elevators—Electric-railway equipment. 141 

Heating and refrigerating plants. 142 

Meters and testing instruments. 142 

Lamps. 144 

Batteries and battery plants. 144 

Telephone and telegraph equipment. 145 

Wiring supplies. 146 

Domestic appliances—Electric fans. 147 

Other electrical goods.. 147 

Conduct of trade with Japan. 148 

Banking facilities. 148 

Monetary system—Weights and measures—Language. 148 

Customs tariff. 149 

Terms—Business methods—Packing. 151 

Representation—Trade-marks and patents. 152 

Manufacture of electrical goods in Japan. 154 

Japanese exports of electrical goods. 154 

Labor situation—Raw materials. 155 

Power-plant equipment. 157 

Transmission and distribution equipment. 159 

Motors and controlling apparatus. 161 

Electric-railway equipment—Measuring instruments. 162 

Lamps. 162 

Batteries. 164 

Telephone and telegraph equipment. 164 

Wire. 165 

Switches, sockets, etc.... 166 

Domestic appliances—Electric fans. 168 

Other electrical goods. 169 

Japan’s place in electrical trade of future. 169 

Chosen. 170 

Introduction. 170 

General information. 170 

Ports and transportation. 172 

Tariff—Representation in Chosen market. 173 

Power stations and systems. 174 

Electric railways—Telegraph and telephone systems.... 175 

General electrical goods. 176 

Vladivostok. 177 

Introduction. 177 

Conduct of trade. 181 

Manufacturing. 185 

Imports of electrical goods. 186 




































































CONTENTS. 


5 


Vladivostok—Continued. Page. 

Market for particular kinds of electrical goods. 186 

Turbines and engines—Water wheels. 186 

Generators and switchboards. 188 

Transmission and distribution equipment. 188 

Motors and controlling apparatus. 189 

Electric-railway equipment—Heating and power plants. 189 

Meters and testing instruments—Lamps—Batteries. 190 

Farm-lighting plants. 191 

Telephone and telegraph equipment. 191 

Wiring supplies and light fixtures. 191 

Domestic and office appliances—Other electrical goods. 193 

Appendixes: 

Appendix A.—Catalogues. 195 

Appendix B.—Samples. 195 

Appendix C.—Trade lists. 197 

ILLUSTRATIONS. 

Facing page. 

Fig. 1. Pole lines in foreign settlement of Hankow. 48 

2 . Distribution substation in French concession, Shanghai. 48 

3. Pole setting used in Shanghai..... 48 

4. Portable low-tension transformer substation used by Chinese system.. 49 

5. Wiring in bank manager’s office in Peking. 49 

6 . Street scene in Mukden, showing signs.. 84 

7. Japanese 10,000-kilowatt steam-turbine unit, Osaka. 84 

8 . German 11,000-volt switch-cell group, Japan. 85 

9. Tower line of Kinagawa Power Co. 85 

10. Typical distribution-line construction, Tokyo. 140 

11 . Typical distribution-line construction, Tokyo. 140 

12 . Typical distribution-line construction, in side street, Yokohama. 141 

13. Trolley-line construction, Tokyo. 141 

14. Trolley-line construction, Kyoto. 148 

15. Telephone in Japanese hotel. 148 

16. Electric-sign installation in Japan. 149 

17. Small Japanese lamp factory. 149 

18. Plant of Oki Electric Co., Tokyo. 164 

19. Yokohama Electric Wire Works. 164 
























































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LETTER OF SUBMITTAL. 


Department of Commerce, 

Bureau of Foreign and Domestic Commerce, 

Washington , September 21, 1918. 

Sir: There is submitted herewith a report on electrical goods in 
the markets of China, Japan, and Vladivostok, by R. A. Lundquist, 
a trade commissioner of the Bureau. The opportunities for electrical 
goods in China and Japan are essentially different in that China is 
primarily an importer and Japan primarily a manufacturer and 
exporter. China represents a rich potential market that by its 
extent offers ample rewards even if development is relatively slow, 
and Japan a market in which home manufacture has already limited 
imports largely to specialties and with which the trade is likely to 
be still more highly specialized as domestic production expands. 
Both Japan and the United States have greatly increased their sales 
of electrica goods to China since the war cut off the German and 
diminished the British supply; but the propinquity of Japan and 
the cheapness of Japanese products enabled it to take 44 per cent 
of the Chinese electrical trade in 1916, as against 17 per cent for the 
United States. The present report presents a detailed study of both 
countries, together with a brief survey of conditions at Vladivostok 
and in the surrounding district. 

Respectfully, 

B. S. Cutler, 

Chief of Bureau. 

To Hon. William C. Redfield, 

Secretary of Commerce . 




ELECTRICAL GOODS IN CHINA, JAPAN, AND 
VLADIVOSTOK. 


CHINA. 

INTRODUCTION. 

China is an immense country with a vast population. American** 
and others who have never been there and who have not cultivated 
the habit of extensive reading still picture this nation of an ancient 
civilization as they had it presented to them in their grammar-school 
geography. They have had before them and have appreciated a 
constant change in conditions at home, but in many cases they have 
been unable to comprehend a similar change in other parts of the 
world. Toward China, especially, this attitude has been common. 

There has been no sudden change in economic conditions in China, 
but there has been a gradual development due to more intimate con¬ 
tact with foreign civilization, to better transportation facilities, and 
to a slowly increasing earning power on the part of the people as the 
country has become more and more open to foreign intercourse. 

In 1880 the net imports into China had a value of a little over 
79,000,000 haikwan taels; in 1916 the total direct imports were a 
trifle over 535,000,000 taels. In 1880 the tael was worth $1.38 in 
currency, so that the value of the net imports was $109,000,000. In 
1916 the tael had a value of $0.8283 and the value of the total imports 
was $443,000,000 in American money. The country, therefore, in 
the period from 1880 to 1916, increased its purchases of outside goods 
6.77 times when reckoned in taels or 4.06 times when figured in 
American dollars. 

In 1914 (to take a year more normal than 1916), out of a total of 
584,209,003 taels of direct imports, 167,993,852 taels came from 
Hongkong, 39,149,254 taels from British India, and 105,207,580 taels 
from Great Britain—a total for the British Empire of 312,350,686 
taels, or about 56.9 per cent of China’s gross imports. During the 
same year imports from Japan totaled 127,119,992 taels, or about 
21.8 per cent, while only 41,231,654 taels’ worth of goods and mate¬ 
rials were entered from the United States (including Hawaii), a trifle 
over 7 per cent of the country’s direct imports. Imports from Ger¬ 
many in 1914 were 16,696,945 taels, or 2.9 per cent of the total, while 
Belgium furnished 17,940,243 taels, or a little over 3 per cent. Russia, 
both European and Asiatic, showed a total of 21,275,398 taels, or 
3.6 per cent. 

Because of the shipping routes taken by goods sold to China the 
figures given are not necessarily the exports of the countries to which 
they are credited. The Chinese customs authorities classify imports 
according to the last foreign port from which they are shipped. For 
instance, Hongkong is a British port and is a transshipping center 

9 



10 


ELECTRICAL GOODS. 


for South China and for other countries in that locality as well. 
Therefore, while a great percentage of the imports from Hongkong 
into Chinese territory is of British origin, there must be a fair amount 
from other countries. No data are available, however, as to the 
origin of Hongkong exports. Import houses there might buy goods 
from the United States, for instance, for sale to Chinese dealers in 
Canton, and the shipments would be classified in the Chinese customs 
as imports from Hongkong. 

In the sale of electric^ goods, prime movers, etc., the Chinese 
import statistics, while not very detailed, indicate that the largest 
percentage has come from British territory. Under the classification, 
"imports of machinery, propelling (as boilers, turbines, etc.),” for 
the pre-war year 1913, the imports direct from the United Kingdom 
were 406,724 taels out of a total of 658,349 taels, and those from 
Hongkong were 22,157 taels, so that imports from the British Empire 
represented 65 per cent of the total. In this same year the American 
share of the trade in this fine was about 6 per cent, Germany’s was 15.6 
per cent, and Japan’s about 7 per cent of the gross direct imports. 
Of the imports of “telephone and telegraph materials” in 1913 the 
United Kingdom and Hongkong are credited with about 40 per cent, 
Germany with 30 per cent, Japan with almost 12 per cent, Belgium a 
trifle over 12 per cent, and the United States about 2.5 per cent. 
Of the direct imports classified under “ electric materials and fittings,” 
the United Kingdom and Hongkong had in 1913 approximately 32 
per cent, Germany 35 per cent, Japan about 16 per cent, and the 
United States 7.4 per cent. 

In the figures cited the amounts imported from Hongkong do not 
approach the importance that they do in the figures for total direct 
imports. They are only a small percentage of the British totals, 
except in the case of electric materials and fittings, where they make 
up one-quarter to one-third. Taking into consideration, however, 
the fact that the majority of American importers have their head¬ 
quarters in Shanghai and do not have an important volume of busi¬ 
ness with South China, and the further fact that only a few American 
electrical manufacturers are strongly represented in Hongkong, it is 
probable that no large percentage of imports from Hongkong in 1913 
was of American origin, though a fair volume of fan and motor 
business has been developed there in recent years. 

It is of interest to note that a good percentage of the electrical 
imports from Japan were probably made in factories in which Ameri¬ 
can electrical manufacturers have strong financial interests. 

In a country with the immense population of China a progressive 
tendency and an increased purchasing power on the part of a very 
small percentage of the people will mean a large gross number. One 

S er cent of the population aggregates three times the population of 
few Zealand or three-fifths that of all Australia, and it is no stretch 
of the imagination to venture that there are more “live prospects” 
for electrical work and a greater purchasing power in this hand¬ 
picked 1 per cent than exist in the countries named. While China 
is on the whole a poor country, there are numerous wealthy mer¬ 
chants and officials, who are appreciative of modern conveniences 
and comforts. 

It is not only this wealthy class that is taking to electricity. As 
one passes along a street in a Chinese city where electricity is available, 


CHINA. 


11 


he is struck by the number of small native shops of all kinds that 
have good electric lighting. The shops give an impression of being 
over rather than under lighted, and unquestionably the foot-candle 
intensity is greater in an average small Chinese retail store than it is 
in many a store of equivalent importance in a small American city. 
The use of electricity for power is limited for various reasons discussed 
later, but there is undoubtedly a desire for electricity for lighting. 

At present probably not more than 100 cities in all this vast coun¬ 
try have electric service, and consequently there is, as yet, only a 
limited field for wiring materials by themselves. The strong present 
market lies in the furnishing of apparatus and materials for new 
stations. This market is developing faster than one would expect. 
Central stations are being built by local Chinese capitalists, either 
with or without the aid of credit from foreign importing houses. 

While a fair volume of electrical trade is possible now, the great 
volume of trade with China will come with the country’s development. 
The earning power of the average man is so low that he can not afford 
much more than the luxury of having enough food each day to sat¬ 
isfy his hunger. Development of the country will increase this 
earning power, and with it will come an increased purchasing power 
that will make possible a more extended use of electrical service. 

Congestion of laborers in any locality naturally increases the 
competition for work, and competition under such circumstances 
brings about a low cost of labor and an earning power that barely 
suffices for the necessities of life. Congestion holds the earning 
power of laborers in China at a low point to-day, and it is through 
relief from this situation that increased purchasing power will be 
obtained. 

Transportation facilities will bring this relief. In the past China 
has been dependent upon its system of inland waterways for handling 
the bulk of its commerce. The Hwang River in North China, the 
Yangtze River in Central China, and the West River in South China, in 
connection with a great system of canals, have been used commercially 
as have no other rivers in the world, giving due consideration to the 
means available. Most of the Chinese are dependent upon the soil 
and have of necessity lived where they could obtain access to water 
transportation for their products. This has brought about a con¬ 
gestion throughout the country drained by these river systems. 
Development of the railways of China will open up new country and 
in addition will make it possible to tap China’s great mineral re¬ 
sources, as yet hardly touched. Labor will thus be drawn from the 
overcrowded sections of the country and the gradual betterment of 
labor conditions will bring about increased purchasing power. 

Education, also, will aid in the development of the country. This, 
combined with a growing earning power, will result in better living 
conditions, and an increase in the demand for everything that goes 
to make up a higher standard of living. 

Stability in governmental affairs is likewise a factor in the devel¬ 
opment of China, especially pertinent to this investigation. Chinese 
merchants appear to hesitate about putting money into public 
utilities until they can feel assured that their investments will be 
protected from extortionate demands by provincial and local authori¬ 
ties, and that the properties themselves will not be liable to damage 
during times of revolution. 


12 


ELECTRICAL GOODS. 


Those who wish to meet success in entering this market must bear 
in mind that first of all they must arrange for proper representation; 
that, secondly, they must have goods adapted to the needs of the 
Chinese under existing standards; and that, thirdly, they will find it 
a great advantage if their representatives in China are able to extend 
moderate terms of credit to native companies that may buy central- 
station apparatus and materials. Another factor of importance to 
American manufacturers generally is that there should be American 
ships to carry the goods. 

For China, with its tendency toward more stable political con¬ 
ditions, it does not require a gift of prophecy to see a great change 
in the next 5 or 10 years, both politically and economically. With 
this economic betterment will come electrical development, which, 
taking into consideration the immense population and the present 
backwardness, should result in a strong demand for electrical goods 
of all kinds. American goods have a good nanje and the United 
States as a nation stands well with the Chinese. If American electrical 
manufacturers are willing to cultivate the market in a broad-minded, 
thorough manner, China affords an over-sea market almost as rich 
in its potentialities as all of South America. It is a relatively small 
market of to-day but a great one of to-morrow. 

GENERAL INFORMATION ON CHINA. 

China proper, consisting of 18 Provinces, has a total area of 
1,532,800 square miles; and with Manchuria, of 1,896,500 square 
miles. Including its dependencies, Mongolia, Chinese. Turkestan, 
and Tibet, the total area of Chinese territory is 4,278,352 square 
miles, or only 200,000 square miles less than the United States 
(including Alaska), Mexico, and Central America combined. 

North China and the Yangtze Valley consist of an immense alluvial 
tract, lying between just above sea level and an elevation of 1,000 
feet, which takes in most of the country from Peking to some distance 
south of the southernmost flow of the Yangtze River. This allu¬ 
vial plain extends inland from the coast for distances of 150 to 600 
miles or more and is very fertile. Hemming in this area are rugged 
mountain sections, with some agricultural lands lying between the 
mountain ridges at elevations of 1,000 to 3,000 feet above sea level. 

Through the northern part of this alluvial area flows the Hwang 
(Yellow) River, China’s historic River of Sorrows. Subject to wide 
variations in flow, this river time after time in the long history of 
China has overflowed the flat country through which it takes its 
course and has wrought immense destruction of life and property. 
It has not only shifted its course in the interior but now empties into 
the sea some 250 miles north of its former mouth. Through the far 
southern border of the plain flows the Yangtze River, affording a 
cheap means of transportation between Shanghai and the upper 
reaches of the alluvial belt. The main Grand Canal system, a won¬ 
derful piece of engineering, runs generally south from Tientsin to 
south of the Yangtze River, crossing the Hwang and the Yangtze 
Rivers and connecting them. The distance between the rivers along 
the canal is about 380 miles. 

Beyond the central alluvial plain, to the west, the country is some¬ 
what rough and mountainous, with stretches of agricultural country 


CHINA. 


13 


in the numerous valleys. The western Provinces are rich not only 
in the products of the soil but in their mineral resources, which as 
yet are hardly explored. Approaching the Tibetan border the 
country is very mountainous, the peaks reaching high altitudes. 

North and northeast of China proper lies Manchuria, made up of 
three Provinces, with an area of 363,700 square miles and a popula¬ 
tion of about 15,000,000 people. Manchuria is politically a part of 
China, but large sections of it have been exploited commercially 
by Japanese and Russian governmental enterprises so that these 
countries have practically complete control within their particular 
“spheres of interest.” The Japanese are active from Dairen north 
to Changchun and the Russians from Changchun north to Harbin. 
Their railway rights give them control over zones extending along 
these lines. The part of Manchuria naturally treated commercially 
as a part of China lies south of Changchun; the country north of 
Changchun will probably be better handled in normal times through 
Vladivostok and Harbin. Manchuria consists of wide expanses of 
fertile rolling land and much resembles the northern part of the 
Middle West of the United States. 

CLIMATIC CONDITIONS. 

South Manchuria has a climate much like that of the northern 
Middle West of the United States. The winters are severe, and 
though the temperature does not get quite so low as in the part of 
the United States referred to, the bitter winds make the cold very 
trying. The summers are hot, and dust storms sometimes occur. 

In North China proper, including the territory from the Hwang 
River north, the weather is not quite so severe in winter as it is in 
Manchuria and the summers are somewhat hotter. In middle 
China, that is, the Yangtze River district, the temperature does not 
often fall below the freezing point and the rivers do not freeze over, 
as they do around Peking and Tientsin. The summers are very hot 
and the humidity is high, especially close to the seacoast. South 
China has a generally warm climate, though not so warm as the 
latitude would cause one to expect. It is, however, very humid, 
and this makes the heat more oppressive in the summer time and the 
cold more piercing in winter, though the precipitation during the 
colder season is only a small proportion of the annual rainfall. At 
Hongkong the rainfall is 84 inches per annum, at Shanghai about 
44 inches, and at Peking only 25 inches. 

The climatic conditions that bear directly upon electrical appa¬ 
ratus and construction are the extreme humidity and the severe 
winds, both of which are prevalent in the southeastern portions of 
China. The humidity along the coast from Canton up to Shanghai 
and beyond is such that electrical apparatus often develops insula¬ 
tion troubles. Conditions in Hongkong are very bad for telephone 
insulation, fan windings, etc., and Shanghai is hardly any better. 
Types of fans that in the United States would operate without the 
slightest indication of leakage will often give annoying shocks when 
handled in Shanghai. In Hongkong, which is built on the side of a 
steep hill, the manager of the local telephone exchange stated that 
in the Peak District it is necessary to use an electric heater to dry 
out a private branch exchange board once a day during the summer 
months This Peak District lies near the top of the hill referred to 


14 


ELECTRICAL GOODS. 


and is about 1,200 to 1,500 feet above the main business street. A 
cable railway makes the trip from terminus to terminus in about 
10 minutes. Clouds hang about the Peak a great portion of the 
most rainy months. All the elite of the city live in tnis district, so 
that there is a demand not only for all kinds of electrical service 
but also for good service. The leakage in wiring is such that lead- 
covered wire is installed in most instances, except where the wiring 
is carried on porcelain knobs; this, however, is not done much in 
telephone work, but it is employed somewhat for cheap house wiring. 

The typhoons that sweep along the China coast, without going far 
inland, are a severe test of overhead equipment. The word “ ty¬ 
phoon” comes from the Chinese for high wind, and old inhabitants 
declare the word is too mild. These storms are of a cyclonic nature, 
differing from a cyclone in the United States in that the diameter 
of the cyclonic disturbance may be 100 or more miles and that the 
center advances very slowly—from 10 to 100 miles a day. A city 
may, therefore, feel the worst effects of the storm for four or five 
hours. Ports along the coast from Hongkong to Shanghai are 
most subject to these storms, which average 16 per season. 

POPULATION AND LIVING CONDITIONS. 

In view of existing conditions it is impossible to state the popula¬ 
tion of China exactly. The method of taking an official census 
consists in making a count of the families and using an average 
multiplier, which is liable to lead to wide variations in result. The 
China Year Book for 1916 gives the following table, which also shows 
the density per square mile: 


Population. 


Population 
per^square 


Sq. 


Chihli . 
Fuhkien. 


Hupeh.. 


Total... 


54,826 
36,680 
115,830 
46,332 
67,954 
83,398 
71,428 
125,483 
69,498 
38,610 
77,220 
100,000 
67,182 
81,853 
55,984 
75,290 
218,533 
146,714 


1 , 532,815 


17 , 300,000 
17 , 000,000 
32 , 571,000 
13 , 100,000 
25 , 600,000 
23 , 600,000 
24 , 900,000 
5 , 000,000 
14 , 500,000 
17 , 300,000 
6 , 500,000 
27 , 700,000 
11 , 300,000 
10,000,000 
29 , 600,000 
8 , 800,000 
23 , 000,000 
8 , 500,000 


316 , 271,000 


277 


Arilrin g 

Hangchow. 

Paoting. 


Nanchang. 

Nanking. 


Canton. 

Kueiyang. 

Taiyuen. 

Tsinan. 


Chengtu. 


206 


Manchuria is estimated to have a population of about 15,000,000, 
only part of whom are supplied through regular China trade channels. 

In addition to the native population there were 186,000 foreigners 
in China in 1916, of whom 104,000 were Japanese, 55,000 Russians, 
9,000 British, and 6,000 Americans. 

The Chinese are a calm, phlegmatic people, good-humored, keen 
in business, thrifty, and intelligent. They have from time imme- 





























CHINA. 


15 


morial shown an appreciation amounting almost to reverence for 
classical learning. An engineer passing through China is much 
impressed by the wonderful engineering work involved in the con¬ 
struction of canals, irrigation works, and bridges, and by the clever 
methods and processes followed by artisans in the cities with only 
the crudest kinds of tools and equipment. One characteristic of the 
Chinese that has a bearing upon electrical development is the uni¬ 
versal pride in keeping up appearances. To “lose face,” as it is 
expressively termed, is one of the worst things that can befall a 
Chinaman. If one retail shop is induced to make a complete elec¬ 
trical installation, competitors try to meet the standard so as not 
to “lose face.” This is probably the reason for the high illumination 
value in many Chinese shops. 

In large cities like Shanghai, Hongkong, Hankow, and a few of the 
treaty ports, where there are foreigners, the wealthy Chinese often 
erect large and well-appointed brick or concrete homes, with spacious 
grounds. Where there is not the moral support of foreigners living 
in a city, there seems to be less of a tendency to build large homes. 
It may be that the wealthy do not wish to make much show of wealth 
where they are doubtful of police protection. 

The average small homes in China are built with walls of mud or 
of sun-burned brick; the roofs generally are of tile, though straw- 
thatched roofs are seen. Wooden houses are not so general as would 
be expected, the forests having been thinned out for fuel. In the 
southern portions of China, where climatic conditions are not very 
severe, many families live on boats. In a typical case observed a 
family of eight lived on a sampan about 22 feet overall, with a beam 
of about 5 feet. This boat was engaged in carrying passengers 
across the harbor, in addition to its use for domesticpurposes. 

In China there is no family life as we know it. The men of the 
family eat in a room by themselves. Polygamy is much practiced by 
those who can afford it, and in such cases the different wives with 
their children have separate apartments. The tendency among the 
better classes, fostered by the recent development of educational 
facilities and by religious institutions, seems to be toward an improve¬ 
ment in living conditions, which are an important factor in any 
potential market for electrical appliances. 

The two main amusements of the Chinese people appear to be their 
theaters and tea houses. The native plays are well attended, and 
moving-picture shows are popular. Attending a Chinese theater in 
a large port city one hot evening, the writer was struck by the good 
ventilation, in spite of the fact that both men and women were 
smoking. The electric lighting also was ample and was disposed so 
as to have little unfavorable effect on the eyes. Electric fans of 
both ceiling and wall types were in operation. Tea houses are found 
in the larger Chinese cities, to which even a poor man can go for an 
hour’s recreation over his tea. The patrons bring with them their 
own tea and for a small fee the house furnishes cups and hot water. 

CHINESE DIALECTS AND THE WRITTEN LANGUAGE. 

One of the features of Chinese life that has a great bearing upon 
the establishment of government and upon the development of trade 
is the lack of a language that is generally spoken and understood 


16 


ELECTRICAL GOODS. 


throughout the country. There is a wide variation in the language 
used in the different treaty ports; a Cantonese can not speak with a 
man from Shanghai, and neither can talk with a third from Amoy. 
The nearest approach to a universal language is the Mandarin 
dialect used by the official class, spoken by all educated Chinese, 
and at least understood a little by many of the middle and lower 
classes. Though there is considerable variation between the official 
Mandarin and the Mandarin dialects used in different centers of China, 
the differences are readily mastered. In the treaty ports “pidgin 
English” is much used—a haphazard gathering of simple English 
words without much regard for grammar or customary meanings, 
which is sometimes extremely difficult to understand. The word 
“pidgin” is said to mean “business.” The educated Chinese do not 
employ pidgin but speak grammatical English. 

The knowledge of the language of the country in which one is 
doing business is a great factor in success. Probably a majority of 
the foreigners who have been in business in China for a number of 
years do not speak Chinese, but a larger percentage of those coming 
out in recent years are studying the language. The variation in 
dialects is a handicap, in that a man may acquire fair fluency in one 
district and upon being transferred to another city will almost have 
to begin over in his study. Those who wish to make a big success 
of their Chinese business, however, will find it very important to 
acquire at least a speaking knowledge of the Chinese language. 
Written Chinese is universal, and though there are almost 50,000 
different characters, a knowledge of about 2,000 will enable one to 
read newspapers and ordinary literature. 

EDUCATIONAL FACILITIES. 

Until 1901 there was no modern system of education in China, the 
only facilities being those provided by missionary organizations. 
The standard of education prior to that time was a knowledge of the 
Chinese classics mainly, and no one was elegible to be a Government 
official who had not passed into one of the three grades of scholar¬ 
ship, the Government conducting stringent examinations of candi¬ 
dates every three years at the more important towns. Great honor 
was shown a holder of even a lower degree, and those standing first 
in the highest degree were granted marked favors by the Emperor 
and became great personages. 

In 1901 an imperial decree ordered the introduction of the modern 
system of education, which was being developed when the revolution 
of 1911 occurred, breaking up the school system to a great extent. 
Under the republican Government a Minister of Education was pro¬ 
vided for, and in 1912 a system of schools was established, taking 
children into an elementary grade at the age of 7. The plan 
provides for normal, collegiate, and professional schools, and foreign 
teachers were engaged. While as yet only partly developed, the 
schools are fairly well attended, and the next few years should repre¬ 
sent a period of rapid development in Chinese education. 

It is judged that to make education universal in China, 1,000,000 
schools would be required. The highest estimates seen place the 
present total at 61,859 governmental and 24,541 private schools of 
various kinds. The China Year Book for 1916 stat s that in a report 


CHINA. 


17 


of the Minister of Education in 1915 the following figures are given 
for educational institutions in the Republic: 


Universities. x 11 

Colleges._. ' 21 

Technical schools. 7 

Medical colleges. 3 

Normal schools. 415 

Middle schools. 502 

Primary schools. 50, 071 


Half-day schools. 965 

Military medical schools. 85 

Girls’ schools. 298 

Industrial schools. 82 

Law schools. 49 

Schools established by foreigners. 72 


The schools established by the missions have done great educa¬ 
tional work, and a large number of the strong men of the country 
to-day received some part of their education in such schools. Over 
40 preparatory or industrial schools are supported by the various 
missions. 

Many of the engineers in China have taken their degrees in the 
United States and a few have gone to England. The Chinese 
governmental colleges aim to provide these courses in the future. 
At Hongkong there is a foreign university that gives a full engineer¬ 
ing education. This school, while small, has a good deal of modern 
mechanical and electrical equipment in its laboratories, practically all 
of which was donated by British manufacturers. The staff is all 
British, and the college has the moral support of the colonial govern¬ 
ment. At Shanghai, German business institutes had cooperated 
in establishing an engineering school that would teach young Chinese 
German standards. A staff of German teachers was in charge. In 
many of the Government schools it was said that the electrical equip¬ 
ment used in the physics laboratories was of Japanese make, and 
complaint was made that it was shoddy. 

It is apparent that both the British and the Japanese manu¬ 
facturers appreciate the value of having their apparatus used in 
educational institutions. American manufacturers appreciate this 
advantage in the United States but do not seem to have gotten so 
well in touch with the situation in China. The practice is ot especial 
value in China, because the average Chinese is more careful in sticking 
to something he knows than is anyone else in a foreign market, and 
if he learns from experience in his school training that a certain 
“chop,” or make, of apparatus is good, he will be very likely to hold 
that opinion when he gets into the central-station field. This 
tendency to hold a “chop” is borne out by the experience of importers 
in all classes of goods. 

PRINCIPAL CITIES AND TREATY PORTS. 


For several hundred years foreigners carried on commerce with 
China without being able to obtain any of the property or residence 
rights that are customary among other nations. In 1842, after chaf¬ 
ing under the restrictions for years, the British negotiated a treaty 
under which foreign countries could establish consulates at specified 
ports, their citizens could establish themselves in trade permanently, 
and stations were provided for the collection of duties. The first 
treaty covered the ports of Shanghai, Canton, Amoy, Foochow, and 
Ningpo, but ports have since been added from time to time, so that 
at present there are 48 so-called treaty ports, in addition to a number 

70005°—18-2 















18 


ELECTRICAL GOODS. 


of cities “ opened to international trade.” At the treaty ports there 
are generally concessions or settlements in which foreigners have 
their houses and which in some cases are policed and governed by the 
foreign residents. 

One important point in regard to treaty ports is that goods on 
which duty has been paid at one port may be shipped to another 

E ort without duty. If a house has a stock at Shanghai, goods can 
e shipped to Hankow or to Swatow or to any of the other treaty 
ports without the payment of further duty. If, however, the goods 
go to a point not a treaty port, taxes of various kinds must be paid 
on them. 

The more important of the treaty ports, the Provinces in which 
they are located, and their populations, are as follows: 


Forts. 

Frovincos. 

Copu¬ 

lation. 

Forts. 

Frovinees. 

Popu¬ 

lation. 

Amoy. 

Fukien. 

114,000 
40 500 

Kowloon. 

K antung. 

(») 

377,120 
53,900 
455,000 

A ntnng _ 

Shengking( M anchuria) 
Kwantung.. 

Nanking. 

Kiangsu. 

Canton. 

900’ 000 

Newch.. ang. 

Shenking(Man huria) 
Chekiang. 

Changsha. 

Hunan. 

500,000 
54 500 

Ningpo. 

Chefoo . 

Shantung 

Shanghai _ 

Kiangsu .. 

651,000 

Chinkia.ng 

Kiangsu ... 

186,120 
702,300 
36,000 
624 000 

Shasi .. 

Hupeh. 

105,000 
500,000 

Chungking. 

Szeciv an. 

Suchow. 

Kiangsu. 

Dairen a 

Shengking( M j nchuria) 
Fukien. 

Swatow .. 

K - 'antung_ 

70 000 

Fooch ow _ 

Tientsin. 

Chihli. 

800,000 
100,000 
98,000 
140,000 

Hangchow. 

Chekiang. 

594,000 
826,000 

Wenchow. 

Chekiang. 

Hankow. 

Hupeh. 

Wuhu. 

Anhui. 

Teh an a. 

Hnpeh.. 

55 000 

Wnchnw _ 

K anvsi__ 

Kiaochow. 

Shantung. 

31,000 




a Placed under control of Chinese Maritime Customs by agreement ■w ith Japan in 1907. 
b Figures not available. 


The principal port of China is Shanghai, which lies a trifle farther 
south than New Orleans. In 1916, 41 per cent of the direct imports 
of the country were entered there, Tientsin being next with a little 
over 8 per cent, Hankow next with a trifle more than 6 per cent, 
Dairen (Japanese) 5.7 per cent, Kowloon 5.5 per cent, and Canton 
4.6 per cent. Tientsin is the port of entry for goods to Peking and 
the main distributing port in North China, Hankow in Central China, 
and Hongkong for South China. Dairen (formerly Dalny) is the 
port obtained by Japan from Russia as part of the terms of the treaty 
ending the war between those countries; through it enter Japanese 
goods, which are distributed inland over the South Manchuria Rail¬ 
way, a Japanese Government-controlled institution, engaged in all 
forms of industrial enterprise. Hankow is a very important center 
and port about 600 miles up the Yangtze River, the depth of the 
river permitting ocean vessels of large tonnage to come up to the 
city during many months of the year. Not only is this city promi¬ 
nent as a port, but it is destined to be a great industrial and railway 
center, having already important steel works. Canton since earliest 
days has been engaged in trading with foreign countries, though it 
is not now to any great extent the terminus of foreign shipments, 
most of its goods being transshipped at Hongkong. Kowloon is on 
the other side of the harbor from Hongkong, and shipments are 
landed there from vessels and carried inland by rail, being dutiable 
as soon as they get out of British colonial territory. 































































CHINA. 


19 


SHANGHAI. 

Shanghai owes its importance to its geographical location; it does 
not possess great advantages as a port. Shanghai is not even on the 
sea. It is about 12 miles up the Hwangpoo River, a narrow stream 
that has required considerable work to make it navigable as far as 
Shanghai, even for moderate-sized vessels. The conservation work 
is handled by a Dutch corporation under agreement with the Chinese 
Government. Large-sized vessels come to anchor at Woosung 
anchorage, at the mouth of the river, and discharge their cargo into 
lighters there. Even there, a bar at the mouth of the river necessi¬ 
tates care on the part of the vessels in approaching or leaving the 
anchorage. 

The city of Shanghai is made up of two foreign settlements and a 
native city built outside of the concessions. Originally the Ameri¬ 
cans, the British, and the French held separate concessions, but in 
1863 the American and British districts were combined into what is 
now known as the International Settlement. France still maintains 
its own concession. The International Settlement is governed by a 
municipal council elected by the residents qualifying as voters under 
certain property-owning or rent-paying restrictions. The British res¬ 
idents have a majority on this council and the staff of the Municipal 
Electric Light Plant is British throughout. There is one American 
at present on the council. The French concession is controlled by 
its own council, under the presidency of the French consul general. 
An American has recently been made a member of this council. 

The foreign settlements have full authority over matters of tax¬ 
ation and order within their borders and have developed into one 
large, clean, busy city, possessing excellent harbor and dock facilities, 
good public utilities, beautiful residence quarters, and good business 
properties. The bulk of the population is Chinese, who are engaged 
in business in the settlements. The Sincere Co., a Chinese organiza¬ 
tion with department stores in Hongkong and Canton, last summer 
erected a five or six story building planned on American lines, with 
elevator service, roof garden, etc. Another company is completing 
a rival department store across the street. 

The Sincere Co. style themselves “universal providers,” and in 
their stores at Hongkong and Canton appear to live up to their name. 
Of interest to engineers is the fact that at Canton they not only have 
the usual appurtenances of an American department store, but it is 
stated that they have recently added a foundry department and a 
machine shop, which is a step ahead of their American contempo¬ 
raries. There are in Shanghai a number of large foreign owned and 
operated stores handling broad lines, and these supply the great 
majority of the wants of the foreign residents at present. 

Shanghai has three electric-lighting systems and three street-car 
systems, covering the International Settlement, the French con¬ 
cession, and the native city, respectively. The system serving the 
International Settlement is the most important, the Municipal 
Electric Light Plant especially being a large factor in the industrial 
growth of the city. Shanghai not only has developed into the 
principal port of China but is its greatest industrial center as well. 
The strong position taken by the Municipal Electric Light Plant in 


20 


ELECTRICAL GOODS. 


the granting of low rates to large consumers, together with the fair 
taxation and the security of property within the settlement limits 
has attracted a large number of factories to Shanghai. The more 
important of these are flour mills, cotton spinning and weaving mills, 
silk-spinning mills, and machine shops engaged in ship work. The 
connected motor load on the Shanghai Municipal Light Plant aggre¬ 
gated 20,340 horsepower at the end of 1916. The net motor connec¬ 
tions for 1916 amounted to 5,793 horsepower, while in 1915 the net 
increase was 2,365 horsepower. In 1904 the total connected motor 
load was only 60 horsepower. At present one customer alone has 
a demand of 2,860 kilowatts. 

TIENTSIN, DISTRIBUTING CENTER IN THE NORTH. 

Tientsin is made up of a group of foreign settlements and a native 
city. The first concession was made to Great Britain about 1860 and 
there are now French, Russian, Belgian, Italian, and Japanese con¬ 
cessions. The former German and Austrian concessions are now 
under Chinese administration. The population in 1914 was given as 
750,000 natives and 5,391 foreigners, made up of 1,772 Japanese, 
1,530 British, 753 Germans, 542 Americans, 294 French, 154 Rus¬ 
sians, and a few Danes, Norwegians, Swiss, Portuguese, and Spaniards. 
The foreign settlements are built up well in foreign style, with well- 
kept streets and good residences and business houses. 

While Tientsin is regarded largely as a distributing port, handling 
goods transshipped at Shanghai, it is becoming to some extent a port 
of original entry in that Japanese goods are now coming into the 
market in greater volume than previously and these cargoes come 
direct from Kobe or Yokohama. So far as American electrical goods 
are concerned, Tientsin will for some time be a distribution center 
for Shanghai, unless American shipping becomes of greater importance 
in the China trade than it has been in the past and American firms 
establish direct import connections at Tientsin. 

Like Shanghai, Tientsin is not on the sea; it is about 35 miles up 
the Pei River, and the larger boats that call at the port do not proceed 
above Taku anchorage. This point is about 8 miles off Tangku, the 
town at the mouth of the Pei River. Steamer passengers are carried 
to Tangku by launch and proceed, generally by train, to Tientsin, a 
distance of 27 miles by rail. There is a bad bar off the mouth of this 
river and ships must go in with the tide. In the wintertime the 
Pei River is frozen over and in some cases steamers call at Chin- 
wangtao, which is an ice-free port. 

There is direct Japanese steamer service from ports of Japan to 
Tientsin via Dairen, and this enables the merchants of that country 
to obtain good shipping service for their North China trade. Ameri¬ 
can goods imported direct into Tientsin under existing conditions 
would probably be transshipped at Kobe. Goods distributed from 
Tientsin are handled inland either by rail, or by bo^t on the river or 
on the Grand Canal, which terminates at Tientsin. This port, there¬ 
fore, has an important place in the trade of China and will probably 
be a larger factor in the future, especially since it is the port of entry 
for Peking. 


CHINA. 


21 


HANKOW, THE CHICAGO OF CHINA. 

Six hundred miles inland is the city of Hankow, the most important 
commercial point in the interior from the standpoint of foreign trade. 
Located on the Yangtze River, one of the great rivers of the world, it is 
reached by ocean-going vessels during the summer months, steamers 
of large tonnage being able to proceed direct to Hankow when the 
river is high. At Hankow the stage of the river is said to vary 40 feet 
during the year. In addition to the ocean traffic that reaches Han¬ 
kow, there are British, Chinese, German, and Japanese river steamers 
operating from Shanghai in normal times. These steamers are of 
good size, of the propeller type, drawing 12 to 14 feet of water, provide 
excellent accommodations for passengers, and carry large cargoes. 
A steamer leaves Hankow for Shanghai, or vice versa, every night— 
sometimes two. Hankow has no rail connection except with Peking 
to the north, though a line toward Shanghai is projected. 

In addition to Hankow, at this point of the river, there are the 
towns of Hanyang and Wuchang, Hankow and Hanyang being 
located at the confluence of the Han River with the Yangtze, while 
Wuchang lies on the south side of the Yangtze River. Hanyang is 
a city of 100,000 people and is of importance because here are located 
the well-known Hanyang Steel Works, as well as a Government 
arsenal. Wuchang is the capital city of Hupeh Province, and here 
are located various provincial buildings, schools, etc. Hankow is, 
of course, the city of importance from a foreign-trade standpoint, 
though as far as general business is concerned, the three cities are one. 
The city of Hankow consists of the old native city and the British, 
Russian, French, and Japanese concessions lying adjacent in the 
order named along the river bank. The former German concession 
is now under Chinese administration. During a revolution a few 
years ago a large part of the old native cities was destroyed, the 
Chinese power plant being damaged to some extent by shells and 
shrapnel. The population consists of about 3,000 foreigners, with 
about 825,000 Chinese living in the native cities, in Wuchang, and in 
Hanyang. A foreigner making his first visit to Hankow is surprised 
at the appearance of the city. Vieing with one another apparently, 
the different nationalities have erected handsome residences and 
office buildings, have provided well-paved streets, and have co¬ 
operated in beautifying the river front for a distance of several 
miles, the Bund here being exceptional. 

Hankow owes its position as the great interior metropolis of China 
to its favorable location. It is in direct communication with foreign 
countries, has frequent service to Shanghai by means of the large 
fleet of river steamers, and is the terminus for the steamers operating 
to Ichang, 387 miles farther up the river, which handle cargo from 
the rich Province of Szechwan, as well as for lines that handle the 
exports and imports of parts of Hunan Province to the south. In 
addition to the steamer lines that operate over a good portion of the 
year, there are said to be 25,000 native junks engaged in the river 
trade that make Hankow and environs their headquarters. In the 
not far distant future Hankow will probably be the strongest railway 
center in China, in addition to its present status as a river port. 


22 


ELECTRICAL GOODS. 


CANTON, HONGKONG, AND KOWLOON. 

Canton is the largest treaty port in South China, and except 
Macao is the oldest Chinese port opened to foreign trade, British, 
French, and American ships coming here long before the city was 
made a treaty port in 1842. Except for steamers to Taiwan and 
Shanghai, the city is no longer the terminus for ocean traffic, Hong¬ 
kong having taken its place. Canton is 90 miles from Hongkong by 
steamer and 112 miles by the Kowloon-Canton Railway. It is 
located on the Chukiang or Pearl River, over which excellent steamer 
service is maintained with Hongkong, boats leaving at least twice 
daily from each end. There is also frequent steamer service to 
Macao. In addition to regular steamer service to Hongkong and 
Macao, a great number of junks are engaged in carrying goods. Can¬ 
ton, however, does not supply as large and prosperous districts as do 
Shanghai, Tientsin, and Hankow, and for that reason its annual 
trade is not so large as the trade of these cities. 

Canton has a population of about 900,000, with only about 700 
Europeans. A Chinese electric-lighting company supplies the entire 
city; there is no street-railway system as yet, but one is planned, 
the proposition being to route the lines where the city walls now 
stand. There is little manufacturing on a modern scale in Canton; 
the products of the city are made chiefly in small shops or in the 
homes. Much of the product is for use in other parts of the Orient. 
Some of the small shops are beginning to turn out attempts at various 
small electrical devices, such as attachment plugs and pendant 
switches. 

Hongkong is the main commercial center for trade in South China, 
though it will be remembered that goods sent from Hongkong to 
Canton are regarded as foreign shipments, just as are cargoes coming 
direct from New York. It is at Hongkong that most of the old- 
established English houses have their main offices and there most of 
South China’s over-sea trade is financed. 

Hongkong is an island about 11 miles long, varying in width from 
2 to 5 miles. While the city is generally known as Hongkong, it is 
actually named Victoria. The island was ceded to England in 1842 
at the time the first five treaty ports were established. Kowloon 
Peninsula was ceded to England in 1861, and in 1898 further territory 
adjacent to Kowloon was leased to England for a term of 99 years, in 
order that proper fortifications might be constructed. 

As is the case at treaty ports, Hongkong has attracted many 
Chinese because of the business opportunities, stable governmental 
conditions, etc., and by the most recent statistics Hongkong and 
Kowloon had a population of almost 457,000, of whom 5,538 were 
Europeans. There are, in addition, many people of Portuguese 
blood, owing to the proximity of the Portuguese colony of Macao. 

Hongkong has splendid harbor facilities and is normally a free 
port; the only charge is a nominal tonnage fee, the returns from which 
are devoted to the maintenance of navigation signals, harbor protec¬ 
tion, etc. With no natural advantages in the way of raw materials, 
Hongkong has still become the center for a group of strong industries. 
Shipbuilding and repair have probably developed to the greatest 
extent, and the port is noted for the excellent docking facilities 
offered either at Victoria or at Kowloon, which is generally included 


CHINA. 


23 


with Victoria in speaking of Hongkong. Other large industries are 
cement mills, a huge rope factory, and sugar refineries, and smaller 
industries include sawmills, a glass factory, cotton mills, soap 
factories, etc. Hongkong is touched by steamer lines from all 
parts of the world. In normal times thousands of vessels in a year 
are dry-docked there by one company for overhauling or repair. 
In the narrow, flat strip along the harbor front are the native quarters 
and the business section, including some fine stone office and Govern¬ 
ment buildings. Farther back, on the steeply rising hillside, are the 
spacious homes of the more well to do. . 

Being a British colony, Hongkong is ruled by a governor sent out 
from England, with the aid of executive and legislative councils. 
The governor has wide powers, including command over the British 
troops stationed on the island. 

DAIREN AND PORTS OF ENTRY FOR MANCHURIA. 

Dairen, held by the Russians under lease from the Chinese until 
it was taken over by the Japanese after the Russo-Japanese War 
is probably the most important port north of Tientsin. Having 
frequent steamer service to and from Japan and being the terminus 
of the South Manchuria Railway, Dairen is the port of entry for a 
large amount of trade. The South Manchuria Railway serves 
southern and central Manchuria and covers the Province of 
Shengking, the most important and populous of the three Manchurian 
Provinces. The steamship lines of Japan being subsidized by the 
Government to an important extent and the South Manchuria 
Railway being controlled by the Japanese Government, a large 
proportion of Japanese shipments are made through this port. No 
great number of foreigners remain in the port city. 

Dairen has shown a great increase recently in imports of electrical 
materials, being second to Shanghai in net imports during 1914,1915, 
and 1916. With the development of Japanese electrical manufac¬ 
turing it is expected that the tendency will be toward the importation 
mainly of goods from that country to supply South Manchuria. 

Dairen has taken considerable of the commerce formerly going to 
Newchwang. This city, which is the treaty port farthest north in 
China, lies almost directly north of Dairen on the Liao River. Like 
other ports in China, it lies about 13 miles up the river and is closed 
to navigation during the winter months. With this handicap and 
with the constant efforts of the Japanese to divert commerce to Dairen, 
where the Japanese merchants are practically the only ones that can 
do business, it is likely that unless shipping conditions improve, Dairen 
will continue to grow at Newchwang’s expense and will be the port 
of entry for most of the imports of southern and central Manchuria. 

Another city, Antung, which is on the border between Chosen 
(Korea) and Manchuria, the Yalu River forming the boundary, is a 
port of entry for goods going into Manchuria. It is here that the 
Chosen railways coming from Fusan meet the eastern section of the 
South Manchuria Railway, which goes on to Mukden, the most impor¬ 
tant center in Manchuria, lying about as far north as Chicago. 
Antung is of increasing importance because of the treaty made 
between China and Japan in 1913, whereby goods coming into 
Manchuria by rail through Antung from any foreign country receive 
a reduction of one-third in duty. This reduction is an advantage 


24 


ELECTRICAL GOODS. 


to any shipper who lands his goods at Fusan, secures prompt atten¬ 
tion in bonding his goods through to Antung, gets cars from the 
Government radway, and is able to have the cars carried through 
without excessive delays or damage en route. 

WEIGHTS AND MEASURES—POSTAL FACILITIES. 

In 1914 China passed a law attempting to fix a standard of weights 
and measures by adopting the metric system on the one hand and a 
specific schedule of native weights and measures on the other; but 
these units are not in use. Throughout the country there is not only 
a wide variation in the unit dimensions employed in the various 
cities but often the different trades in the same city have distinct 
units, as, for instance, the tailors and the carpenters. In Shanghai 
the tailor’s chih, or foot, varies from 13.85 to 14.05 inches in length, 
while the carpenter’s chih is 11.14 inches. For purposes of foreign 
trade the Chinese weights are fixed as follows: 1 liang=l| avoir¬ 
dupois ounces; 1 catty=l| pounds; and 1 picul=133| pounds. 
Drawings are usually in United States feet and inches where Amer¬ 
ican goods are concerned, though metric dimensions also are employed. 

China has a modern postal system under the jurisdiction of the 
Department of Communications. Prior to 1910 the system was 
conducted as a part of the Maritime Customs Service, by which it 
was introduced m 1878. Before the establishment of the present 
system, all Government correspondence was transmitted by private 
courier, while private mail service was in the hands of private institu¬ 
tions, reputed to give good service. The latter has never been fully 
abandoned and private service is still maintained in a few places in 
the country, it is said. 

There are many Europeans in the postal service, and the system is 
generally quite well operated, especially between the larger centers. 
The postal regulations are generally similar to those of other countries 
of the postal union. There is a lower maximum weight for matter 
that is addressed to points in the interior where railway or steamer 
transportation of the mail can not be had, the rule stating that in 
such cases the parcels must not exceed 3 kilos in weight or 1 cubic 
foot in volume. In addition, parcels to and from points in the 
Provinces of Shansi, Kansu, Yunnan, Kweichow, and Szechwan are 
charged double rates. 

In addition to the postal system maintained by the Chinese Gov¬ 
ernment, various foreign nations have post offices in many of the 
treaty ports. Just prior to the war Japan had postal agencies in 20 
cities, France in 16, Germany in 13, Great Britain in 12, Russia in 5, 
and the United States in Shanghai only. Japan has since established 
additional offices. These foreign post offices conduct a regular mail 
service between their different offices and between foreign countries, 
operating generally under the regulations that govern at home. 
Letters from any nation’s post office in China will be carried to the 
home country at local rates. For instance, letters may be mailed at 
Shanghai in the American post office at the same schedule of rates 
that obtains in any city in the United States. There is also a regular 
parcel-post service. 

In connection with sending goods to China, the parcel-post service 
offers facilities with which many firms apparently are unacquainted. 


CHINA. 


25 


The United States has a postal agency in Shanghai, which affords 
mail service at domestic rates between the United States and Shang¬ 
hai only. In the electrical trade there are many small orders, or 
even fair-sized ones in small packages that can be shipped economi¬ 
cally by parcel post, especially at this time. The weight limit on 
packages to Shanghai is 20 pounds and the rate is 12 cents a pound 
from any point in the United States. Another feature that will 
eliminate collection troubles is that goods can be sent c. o. d. and 
insured. Meters, small fans, wiring devices, etc., could be sent in 
this way. 

The prompt forwarding of parcel-post shipments from the Pacific 
coast has sometimes resulted in no little inconvenience to the con¬ 
signee in Shanghai. Shippers have assumed a delay in the arrival of 
packages and have failed to mail the invoices promptly. The result 
was that the shipment arrived in China oftentimes ahead of the 
invoice sent by letter. This may have been due to a delay of even an 
hour in the mailing of the invoice, so that the shipment leaving the 
city of origin in a mail that made good connections all the way 
through was able to catch an earlier and possibly a faster steamer 
than the letter. The result has been the arrival of the package with 
no invoice upon which to declare the goods for payment of import 
duty. The invoice should be mailed as soon as the package is made 
up, so that it will be certain to arrive at least by the same boat. 

AGRICULTURE. 

As has already been stated, the Chinese are primarily an agricul¬ 
tural people, the great alluvial plain of Central China having been 
cultivated from the dawn of history. For hundreds of years the 
Chinese have been draining marshy lands and irrigating districts 
where nature did not provide tb6 needed precipitation. Their 
handling of water with the limited means at their disposal has been 
a revelation to foreign engineers. Pumping water for irrigation or 
for flooding rice lands is common. The pumps are sloping troughs 
up which travel thin, closely fitting vanes attached to wooden 
sprocket chains, operating somewhat like the old-fashioned bucket 
pumps. The power is applied by means of a hand crank on either 
side at the top, or by a treadmill wheel overhung on each side of the 
top sprocket-wheel shaft, or by means of a horsepower arrangement 
connected to the pump by a wooden mortise gear and pinion. In 
the first case a coolie sits down on a one-legged stool stuck in the 
mud and works the pump; in the second case, one or two men or 
women walk the tread wheel; and in the third case a water buffalo 
is used to pull the load. In all cases the complete equipment is not 
very heavy and can readily be shifted from field to field as necessity 
demands. 

Cotton and rice are the largest crops raised, with sugar, tea, and 
beans following next. Authoritative statistics of production in China 
are unobtainable, and estimates given by dealers m the various com¬ 
modities vary widely. It is said, however, that China is exceeded in 
the production of cotton only by the United States and India. The 
crop is grown chiefly in the Provinces of Hupeh, Honan, Kiangsu, 
Chekiang, and Szechwan, Kiangsu and Chekiang in the Yangtze River 
Valley being said to produce the best quality. 


26 


ELECTRICAL GOODS. 


Rice also is raised in great quantities in the Yangtze River Valley, 
as well as farther south. Figures for this crop are unreliable, but it 
is believed that 600,000,000 to 800,000,000 pounds per year 
is produced. Tea is a well-known product of China and is raised in 
the Provinces of Yunnan, Szechwan, Hunan, Hupeh, Kiangsi, Anhwei, 
Chekiang, and Fukien. The brick tea made for export to Russia is 
manufactured at Hankow, Kiukiang, south of Hankow on the 
Yangtze, and Foochow. Beans are raised in immense quantities in 
North China and in Manchuria. Bean oil, extracted from the soy 
bean, is widely used in cooking in the east; both bean oil and bean 
cake are large items of export. Sugar is raised to the greatest extent 
in Kwantung and Fukien Provinces and is sent to Hongkong or 
Amoy, where there are large refineries. 

Wheat, kaoliang, and peanuts are grown in North China and 
Manchuria, and wheat should show increasing production. In the 
past this part of China has not been agriculturally developed to the 
same degree as other more temperate portions of the country. The 
Government is now endeavoring to educate the inhabitants to a 
better knowledge of wheat and to aid them in working the crop in 
a manner and on a scale that will develop the potentialities of this 
great wheat-raising belt. 

Silk has been produced in China for many years and is one of the 
most valuable items of export. Kiangsu, Chekiang, Szechwan, 
Kwantung, and Shantung are probably the main silk-producing 
Provinces, though a certain amount is produced in almost all parts 
of China. The Chinese, however, have not carried on their seri¬ 
culture along scientific lines, and consequently the country has not 
held its place in the world’s production. Attempts are now being 
made, however, to conduct a campaign of education to the end that 
better production may be realized. 

Live stock of all kinds is raised in China. Horses from Mongolia 
are known all over the Orient and noted for their endurance as well 
as for their viciousness. Mules and donkeys are much employed as 
pack animals, especially in North China and Manchuria, and a great 
number are reared in those portions of China and also in the western 
area of Central China. The camel is another animal used for pack 
purposes in the part of China contiguous to Mongolia, the territory 
from which most of them come. Sheep and goats are raised in large 
numbers. Cattle raising is carried on in a large way in Mongolia, 
which supplies a large amount of the beef consumed in western 
Asia. It is stated that since the war began Russia has purchased an 
immense number of cattle from Mongolia. Pigs seem to be a part of 
the households that can afford them. They are seen placidly occu¬ 
pying their own “spheres of interest” along the gutters of native 
streets even in large cities. An immense amount of poultry is pro¬ 
duced—chickens, ducks, and geese—probably to the greatest extent 
along the canals of the southern portion of the Yangtze Basin and in 
South China. 

mining. 

The Chinese have never gone far in the development of their min¬ 
eral resources, which appear to be very rich. In late years mining 
has been developed to some small extent, the coal and iron pro¬ 
duction probably being of the greatest importance, though antimony 


CHINA. 


27 


ore has been taken out in large quantities. Gold, silver, and copper 
also are mined. Under Chinese ownership and operated in a more or 
less modern manner, there are said to be 43 gold mines, 23 silver 
mines, 61 copper mines, 173 coal mines, 19 iron mines, and 73 other 
mines of various sorts, totaling 392. Tn addition, there are several 
large coal properties operated by foreign firms, the Kailan coal 
mines in the Province of Chihli being especially noteworthy. The 
Kailan is a coking bituminous coal and is shipped to various parts of 
the Orient, Japan taking large amounts because of the lack of good 
coking coal in that country, it is said. The port of Chinwangtao has 
been developed to handle this coal traffic and the annual exports 
from there are said to be at least 1,400,000 tons, of which Japan has 
been taking 600,000 tons. The output of the mines is given as 3,200,- 
000 tons for 1913, but the workings have been enlarged since then 
and an output almost double that of 1913 is said to be possible. 

Only a small fraction of China’s coal deposits has as yet been 
worked to any degree. A central-station manager who has visited 
the territory stated that there are good coal deposits stretching from 
near the Shansi line to near the Yangtze River—a distance of about 
600 miles. In his plant he was using anthracite costing at the 
plant $10.80 Mex.® per long ton. This coal came from a mine about 
200 miles from Peking by the Peking-Hankow Railway, but he stated 
that he had seen good anthracite within 30 miles of Peking. The 
coal seen at the plant was not quite so hard as the Pennsylvania 
anthracite. There are large deposits of good steam coal in western 
Manchuria and Mongolia, and the Japanese are building a railway in 
that general direction from the South Manchuria line. Coal deposits 
occur in many other sections of China. A Chinese engineer told of 
some unworked seams in Kiangsi Province with which he was familiar. 
This coal ran about 12,300 B. t. u. Coal is found also at no great 
distance from Canton and experiments are being carried on to 
determine its value. With Japanese coal costing $20 Mex. and more 
per ton delivered at Hongkong, there has been great incentive to the 
opening up of local sources of supply, and developments of importance 
will probably result. 

Near Hankow are the large Hanyang Steel Works, operating two 
furnaces with a capacity of 700 tons of pig iron per day. Two other 
furnaces, with a capacity of 800 tons per day are being erected on a 
site close to the source of supply of the ore. The steel works roll 
plates up to three-fourths of an inch in thickness, as well as various 
structural shapes and steel rails. The cost of pig iron at this plant 
is said to be now about 18 Hankow taels 6 per short ton, works cost 
only; including all overhead charges the cost is given as about 30 
taels per ton. 

The works employ about 5,000 men, using many, of course, where 
foreign works would install machinery to do the same work. Fur¬ 
nace foremen receive $100 Mex. per month, roll men $12 Mex. per 
month, and common labor $0.30 Mex. per day. Coke costs 10 taels 
delivered at plant and coal from Japan 8 yen (about $4) per ton 
delivered. 


a Prices in silver dollars of any kind are usually quoted as “Mex.” See section on Currency. 
b Normally the Hankow tael exchanges at a slightly higher rate than the Shanghai tael, for which see 
section on Currency. 



28 


ELECTRICAL GOODS. 


These works are nominally Chinese, but Japanese interests loaned 
the company 24,000,000 yen (about $1,2,000,000) and as security 
obtained a contract that binds the company to furnish them with ore 
and iron at low prices for a long term of years. The quality of the ore 
is specified, and while the local works are handling ore with 50 per 
cent iron and 0.5 per cent sulphur, the Japanese receive 72 per cent 
ore with 0.05 per cent sulphur. The Japanese are to receive 100,000 
tons per year at a price reported to be 2 taels per ton. Under the 
contract also, Japanese are represented to some extent on the staff 
of the steel company. 

Iron deposits are found in many parts of China, and if fair foreign 
cooperation is had there should be considerable development in 
this line in the near future, dependent upon the opening up of trans¬ 
portation facilities and local fuel sources. 

TIMBER RESOURCES. 

Except in the more remote mountainous regions, China’s forests 
have been denuded by long-continued injudicious cutting, and the 
barrenness of all hills in South and Central China is noticeable. In the 
northern parts and in Manchuria the conditions are better. The 
Government is now working on plans to reforest sections of the 
country, an American expert being retained at Peking on that work. 

The officials of the Government telephone and telegraph system 
complained of the difficulty of obtaining suitable pole timber, a good 
deal of which is imported. In Shanghai the municipal lighting 
system buys sawed-pine poles from the American west coast, and 
has used a number of concrete poles also, while the system in the 
French concession employs concrete poles to a great extent. 

In the far western Provinces there is still said to be some timber, 
but that which is accessible to the coast cities is confined mainly to 
the mountains in Chekiang and to some extent in Anhwei Province. 
The knowledge of the country is limited, however, and future lines 
of transportation may disclose more extensive available timber than 
is now reported; but the outlook is not promising and will have a 
bearing on mining development in that there may be a lack of mine 
timber at a fair price. 

% MANUFACTURING. 

China has developed very little manufacturing, except through 
foreign organization and in foreign settlements. With the growth 
of foreign-owned industries, however, the Chinese themselves have 
organized companies to engage in various lines of manufacturing 
and operate cotton spinning and weaving mills, flour mills, match 
factories, bean-oil mills, silk filatures, cigarette factories, etc. For¬ 
eigners note, however, that the Chinese do not seem to “make a go” 
of manufacturing when they undertake to handle everything them¬ 
selves but do well under foreign supervision. However, a district 
manager for a foreign manufacturing company that has branches 
distributed all over China, stated that in his line the competition 
he feared most in the future was that from the Chinese themselves, 
who are beginning to take up the manufacture of his product. 

There is a relatively small amount of manufacturing at some of 
the treaty ports, carried on mainly by foreigners; there is also much 


CHINA. 


29 


household industry, such as spinning and weaving cloth, making 
laces and embroideries, weaving rugs, and making lacquered articles. 
Some of these industries go beyond the household stage in places, 
but there are only few establishments that would be termed factories. 
Common labor is cheap but not very efficient or industrious. Men 
as a rule receive 30 to 35 cents Mex. per day. Women engaged in 
factory work receive 18 to 25 cents Mex., while boys, according to 
age, are paid about the same as women. Girls get 10 to 15 cents 
Mex. a day, dependent upon their age. 

In the manufacture of electrical goods little has been done in 
China. A large American company and an allied Japanese com¬ 
pany have recently erected lamp factories in Shanghai, and this 
practically is the sum total of the manufacturing on any considerable 
scale. There is some small-shop or household making of electrical 
fittings, mainly in Shanghai, Canton, and Hongkong. In Shanghai 
a Chinese jobber is producing an imitation of a well-known American 
semi-indirect lighting fixture, making everything but the bowls, 
which are being purchased from the United States mainly, but also 
from Japan. Small shops also make up regular lighting fixtures in 
fairly plain types. In Canton, which is noted for its small specialty 
makers, there are several shops that make by hand various types of 
electrical fittings, samples oi which accompany this report. One 
interesting fitting is a pendant switch with the casing made of buffalo 
horn. 

While there is no doubt that China will produce an increasing 
amount of all kinds of minor fittings, especially those using the 
bayonet connection, it is not likely that the Chinese will of them¬ 
selves develop any extensive electrical manufacturing. Foreign 
manufacturers will more probably come to China and establish 
factories, endeavoring to take advantage of the cheap labor to 
compete with Japan in the prices of electrical products. It may be 
to the advantage of a manufacturer to make in China certain 
bulky electrical goods or those expensive to ship, in order that the 
heavy freight handicap, as compared with shipments from Japan, 
may be overcome, but the general practice of establishing plants 
abroad, where duty preferences do not make importing prohibitive, 
seems hardly justified. The evidence seems to indicate that Ameri¬ 
can manufacturers of electrical equipment and materials in China 
have to a large extent educated their own competitors, the Japanese. 
In some cases American capital is supposed to control the policies of 
the Japanese companies, but in practice it is found difficult to exercise 
the control. 

TRANSPORTATION FACILITIES. 

INLAND WATERWAYS. 

An intensive development of a great system of canals in connec¬ 
tion with its long navigable rivers has given China a marvelous 
system of inland transportation. Go where one will, if there is 
water available, one will be sure to see a Chinese craft of some kind 
in sight—an unwieldy looking junk with patched sails, or a scow 
poled along a creek, or even a bamboo raft, which is employed to 
carry cargo where only a few inches of draft are permissible. Probably 
no other nation in the world makes so much of its waterways as 
China. 


30 


ELECTRICAL GOODS. 


While the northern portions of China have not the great river 
systems of the southern Provinces, there are some broad streams, 
but the fact that they are frozen over during the winter decreases 
their value and is possibly a reason for the lack of development of 
canal systems. The less dense population and the difference in 
agricultural methods also have been factors. 

The most important river in Manchuria is the Sungari, a branch 
of the great Amur River of eastern Siberia. Along this river are 
great forests, and Kirin, the best-known city on the Sungari, is a 
great timber and lumber center. The Yalu River, which forms the 
boundary between Chosen (Korea) and Manchuria, is navigable for 
500 or 600 miles except during winter months. The Liao River, at 
the mouth of which lies the treaty port of Newchwang, is another 
northern river of importance. 

In North China proper is the Pei River, on which is located Tientsin, 
the most important of northern treaty ports; this has a widespread 
system of branches and provides water communication for the 
major part of the Province of Chihli, in which Peking is located. 
One branch of the river gives a direct waterway between Tientsin 
and Peking. It is from Tientsin that the great Grand Canal of 
China takes its course southward. 

The next river to the south, the Hwang River, is known the world 
over for its terrible floods. It is swift and shifting and is not navigable 
for steamers or even for launches, though as much as 1,200 miles 
of it is said to be used by junks in stretches between rapids. There 
are several large branches of the Hwang River, such as the Wei 
River with its tributary, the King River, which are navigable for 
small boats. The Hwang River is by no means so important as the 
large rivers to the south, in spite of its great length of almost 2,700 
miles. It is reported that some of the rapids in the Hwang River 
provide good sites for water-power developments, but no specific 
data are obtainable and the general conditions do not point to great 
possibilities. 

Through the heart of China flows the great Yangtze River. Its 
length is variously given as 3,200 to 3,500 miles, the variation being 
due to the lack of definite knowledge as to its upper course. The 
Yangtze Basin embraces an area of 700,000 square miles and is the 
home of 200,000,000 people—almost twice the population of the 
United States. The river is navigable for steamers for a distance of 
about 1,000 miles; for steam launches, 1,300 miles; and for junks, 
1,500 miles. It holds an unusual position among rivers of. the world 
in that it not only carries inland traffic but during many months of 
the year is a channel for direct commerce with foreign countries, 
large ocean steamers coming direct to Hankow, a distance of 600 
miles from the sea. 

For the first 1,200 to 1,500 miles from the source to Pingshan in 
Szechwan Province, the river is not navigable. This stretch is 
swift-flowing, with a narrow channel. Estimates place the average 
fall of the river in this section as 10 to 12 feet per mile. For the 
next 300 miles or so, down to Chungking, the river is navigable for 
junks, though the gorges and the swift current make the trip more 
or less difficult. From Chungking to Jchang is a stretch of river 
noted for its gorges and rapids. In recent years special steamers 
have been built to operate between these cities, the trip taking one 


CHINA. 


31 


week up and three days down. The vessels require unusual power 
on account of the extreme current velocity. Three miles above 
Ichang is the first of the Three Gorges, where the river is suddenly 
narrowed down to about 250 feet by cliffs on each side. The sharp 
bends in the river and the sunken rocks make navigation dangerous. 
Between Ichang and Chungking it is said that in addition to the 
gorges, at least 60 rapids are encountered. While the steamers, 
specially designed to stem the current, are able to get through 
without great difficulty, the native junks must be towed up by 
fnan power. As many as 400 men are sometimes required to haul 
a vessel through, chanting as they pull away on a cable 1,000 feet 
or more in length. 

It has be?n claimed that wonderful water-power possibilities are 
presented at these gorges, on account of the great volume of water, 
the high canyon walls, and the rock formation. However, an Ameri¬ 
can engineer who has been engaged in hydroelectric practice states 
that there is a variation of 135 feet in the stage of the river, which 
would offer a very difficult problem. Commercially speaking, the 
development of the power is a matter of some time, even if feasible 
from an engineering viewpoint, in that no great power market is 
possible near by. The opening up of mining on a large scale seems 
to be the only basis upon which such a develoment can be planned 
in the near future. 

From Ichang to Hankow all kinds of craft ply the waters and 
connect at Hankow with the down-river boats and ocean-going 
vessels during the high-water months of the year. From Hankow 
down the stream the Yangtze has a minimum depth of about 12 
feet when the stage is low. At other times of the year steamers 
of 25-foot draft or more can reach Hankow, though a shifting 
channel necessitates careful piloting. At the mouth, where the river 
diverges and goes into the sea by a north and a south channel around 
the island of Taunminghsien, its width is between 30 and 40 miles. 

The West River, on a much smaller scale, serves the territory 
tributary to Canton and Flongkong, as does the Yangtze, the great 
central area of China. It is navigable for large river steamers to 
Wuchow, about 220 miles from Canton by water route, though there 
is a 60-foot variation in the stage of the water during the year, 
which naturally makes it necessary to exercise caution in operating 
the larger steamers. Above Wuchow to Nanning, a distance of 
about 180 miles, the West River is navigable only for boats drawing 
2 \ to 3J feet. The West River was once much feared by vessels 
because of the danger from pirates. Foreign-manned craft are now 
seldom attacked, but native junks are not infrequently looted. 

The Grand Canal starts near Hangchow and crosses the great 
alluvial plain of China with Tientsin as its northern terminus, a total 
length of about 900 miles. The section from Hangchow to Chin- 
kiang on the Yangtze River, 200 miles long, was dug about 1,300 
years ago, with two branch canals leading to Shanghai. The sec¬ 
tion between Chinkiang and Chinkiangpu was built about 1,430 
years ago, and is the oldest portion of the canal. This section is 
130 miles long and takes advantage of a series of lakes. Evidently 
this original part of the canal was dug to connect the Yangtze and 
the Hwang Rivers, the latter river having its course in the vicinity 
of the north end of this section prior to 1852. The portion of the 


32 


ELECTRICAL GOODS. 


Grand Canal from Chinkiangpu to Tientsin is “ modern,” being con¬ 
structed during the period from 1260 to 1290, and completed only 
628 years ago. The southern section of the canal was built witn 
stone banks, but these were destroyed during the Taiping rebellion. 
The Grand Canal still carries a great volume of traffic, but owing to 
poor maintenance, it is navigable only for craft of light draft, and 
this fact, together with the competition of the railway, is lessening 
its value. Improvements have been contracted for, the contract 
having been let to an American company. 

RAILROADS. 

At the close of 1916 China had about 6,400 miles of railways. As 
yet, however, railways are a small factor in the development of the 
country. Peking is connected with Mukden, Shanghai, and Hankow. 
From Mukden one can go east to Fusan in Chosen—about 8 or 10 
hours by steamer ferry from Shimonseki in Japan—north to Harbin 
to connect with the Transsiberian Railway, and south to Dairen. 
In South China there is no such development. There is no rail 
connection between Hankcbv and Shanghai, and Canton has only a 
short stretch of railway running out to Kowloon, across the harbor 
from Hongkong. A line is projected from Canton to Hankow, with 
a few miles already built; other important links in a railway system 
for the country are laid out on paper, but unsettled conditions in 
China and the European war have held everything in abeyance for 
the time being. Railways will do much to open up the country, to 
relieve congestion along transportation routes now available, and to 
increase the earning and purchasing power of the people. 

ROADS AND OVERLAND TRAVEL. 

In addition to its great system of inland waterways, China formerly 
had a large network of national highways, the most important of 
which probably totaled 25,000 miles. Once splendidly built and 
provided with large rest houses or inns at intervals, these roads are 
now not much more than tracks across the country. These highways 
connected the larger centers and were often stone-paved, with masonry 
bridges. In the construction of the bridges the Chinese often dis¬ 
played great skill; many are of arch construction, and in others im¬ 
mense slabs of stone span not inconsiderable distances between piers. 
Bridges are often built high in the air, to permit boats to pass beneath 
them freely, but approaches were often left too low, so that ordinary 
high water will sometimes isolate a bridge. 

To-day there are few good roads in China and not many that are 
much more than wheel tracks. Traffic is largely carried over them 
by means of Peking carts in the north, but not many of these are 
seen in the south. The carts consist of two heavy wooden wheels 
turning on a wooden axle, on which is set a body similar to that of a 
two-wheeled dump cart, except that the body is open in front, with 
the floor of the body extended about 2 feet out over the shafts. There 
is a canopy top over the body. In these carts passengers as well as 
freight are carried long distances, the fact that there are no springs not 
adding to the comfort of the travelers. For light work the carts are 
drawn by a single horse or mule, but when going through the country 
two, three, or more animals are required, and it often happens that a 
horse, a donkey, and a cow will be impressed into service on the sam§ 


CHINA. 


33 


cart. These carts are said to have a carrying capacity of 400 to 
1,000 pounds and to cover 30 miles a day if drawn by one horse and 
40 miles if drawn by twm horses. This is the type of conveyance used 
to the greatest extent in Manchuria and the northern part of China 
proper and is employed by Americans connected with a large corpo¬ 
ration that distributes its products widely in China. These men are 
frequently out for a month at a time traveling from one inland town 
to another. 

Pack animals—horses or camels generally—are used a great deal 
in the territory tributary to Peking and carry 300 to 600 pounds, the 
camels taking the heavier loads. 

Wheelbarrows are a common type of conveyance used for both low- 
fare passenger service and freight. These have a large wheel, prob¬ 
ably 3 to 4 feet in diameter, with a load platform at axle level that 
extends ahead as well as behind the wheel. The “driver” pushes the 
barrow in the usual manner, and in addition has a sling carried over 
his shoulders and brought down to the handles, so that he balances 
the load mainly with his body rather than his hands. In the case of 
heavy loads—sometimes 600 to 700 pounds—where the road or street 
is rough, there will be one or more “pullers” ahead. These barrows, 
with their narrow-tired wheels, are very hard on streets and roads, 
and in Peking it was noticed that they and other heavy traffic were 
compelled to stay in a special section of the street on either side of 
the main driveway. One man will take as many as six or eight pas¬ 
sengers in a barrow at a time, the “fares” sitting back to back on 
the platform on either side of the wheel. In many places the roads 
amount only to footpaths, though they are often paved with large 
slabs of stone, and in such cases the use of barrows is necessary. 

Coolies carry loads considerable distances and are able to handle 
surprisingly heavy cases. For light work one coolie will generally 
swing a basket at each end of a light split-bamboo pole about 6 or 7 
feet in length. Large cases are swung from the middle of a bamboo 
pole, with a coolie at each end, and where the load is too heavy for 
two men additional coolies take part of the weight with other poles, 
cleverly disposing the points of support so that the lift of each man 
is fairly equal. These coolies shuffle along in a sort of running walk 
to the accompaniment of the rythmic grunting of some kind of 
“chanty.” They make very good time, a personal estimate of their 
rate of travel being 4 to 4 \ miles an hour, from which must be deduct¬ 
ed stopovers, as they must necessarily take frequent rests. 

THE TRANSPORTATION FUTURE. 

With all its clever methods of transporting its inland traffic, based 
primarily upon cheap labor, China’s greatest need to-day is improve¬ 
ment in the handling of its commerce from and to the main distribut¬ 
ing centers. The existing methods, limited as they are by poor road 
conditions or poorly maintained canals, work toward a congested 
population; China needs transportation facilities that will spread its 
people over the country more uniformly. 

Repair of the canal systems will help a little, and rebuilding the 
thousands of miles of once good national highways would have an 
immense influence, because to-day the motor vehicle would increase 
their former usefulness many times. However, rebuilding the roads 
would not end the matter; they would need thorough maintenance 

70005°—18-3 


34 


ELECTRICAL GOODS. 


to be usable the year round, and this would be a serious problem. 
It appears that the most important step leading toward better trans¬ 
portation, which means the development of the country, is the con¬ 
struction of railways, after which the other means of communication 
should be brought into use as feeders to the rail system. 

OCEAN FREIGHT SERVICE . 0 

At present there is only one American line, with three moderate¬ 
sized steamers of moderate speed, giving combined passenger and 
freight service between China and the United States. Two or three 
other American companies operate cargo boats from either the 
west or the east coast. A Canadian line operates two large and fast 
passenger and freight boats, and two slower and smaller ones, be¬ 
tween Vancouver and China. 6 A Chinese company is operating, 
under American registry, an American steamer purchased by it when 
the new shipping law caused an American company to dispose of its 
boats and liquidate. 

Three large and several smaller Japanese companies with a large 
number of passenger and freight boats operate from both the east 
and the west coasts of the United States to China and Japan. The 
fact that the Japanese Government subsidizes its steamship com¬ 
panies has been a factor in the rapid rise of Japanese shipping. 

The two large Canadian steamers make the trip from Vancouver 
to Yokohama in 10 days and to Shanghai in 15 days. The next 
fastest service is that recently inaugurated by a Japanese line making 
the trip from Seattle to Yokohama in 12 days. Other Japanese lines 
come across in 16 days to Yokohama, calling at Honolulu. The 
American boats operating from San Francisco to Yokohama and 
then to China take considerably longer. Furthermore, the American 
line has only about one sailing a month, and this fact taken in con¬ 
junction with the slow time made, has resulted in most of the American 
mail for China being carried by either the Canadian or the Japanese 
boats. The latter, sailing from American ports and giving much 
more frequent service, naturally take the greater portion of it. 

Complaints have been made that the mail censorship has caused 
commercial information to find its way to competing firms. Whether 
or not these complaints were justified, American mail steamers 
would remove any possibility of such occurrences. Outside of Japan, 
Shanghai and Manila are more important ports to the American 
business man than any others in the Far East, and quick mail service 
will be a strong future asset. Fast oil-burning mail steamers have 
been suggested that could make the run from San Francisco or 
Seattle to Shanghai in 12 days and after discharging go to Manila. 
Being oil burners they could carry much of their fuel from the 
American end of the run. Enough steamers should be employed to 
make trips two or three times a month. Such a line would be of 
advantage to American traders even aside from the mail question, 
because the Japanese lines give priority to Japanese cargo over 
American cargo lying at Kobe lor transshipment and also grant freight- 
rate preferences to Japanese shippers. 

a Shipping conditions at present are so uncertain that this section should be regarded as giving only a 
general review of the situation, which was accurate at the time the report was written but should not be 
depended upon in making arrangements for actual shipments. Before such arrangements are made the 
latest information should be sought from the shipping companies. 

b Recently taken off for other service. 



CHINA. 


35 


ANALYSIS OF CHINESE MARKET FOR ELECTRICAL GOODS. 

FOREIGN TRADE IN ELECTRICAL GOODS. 

The statistics issued by the Chinese Maritime Customs show the 
imports of electrical goods under very broad classifications. The 
figures for direct imports from abroad for 1913, 1914, 1915, and 
1916 are given in the following table, which also indicates the pro¬ 
portion of the trade held by different leading countries: 


Years. 

Gross imports. 

Value of 
tael. 

Percentage supplied by— 

British 

Empire. 

Ger¬ 

many. 

Japan. 

United 

States. 

Bel¬ 

gium. 

1913. 

Haikwan 
taels. 
3,817,393 
4,444,743 
3,260,941 
4,803,561 

$2,782,879 

2,977,978 

1,995,696 

3,978,790 

$0.729 
.67 
.612 
.8283 

39.3 

43.7 

39.2 

31.1 

30.7 

23.4 

13.8 
18.1 
30.2 

43.9 

6.2 

4.8 

14.2 

16.9 

4.9 

3.7 

0.3 

1914. 

1915. 

1916.. 






Imports from colonial ports are included in the countries named in 
the foregoing table. The business done from Belgium was mainly 
telegraph and telephone materials, the former goods probably being 
Danish in part, while the telephone materials may have been mainly 
the product of a branch plant of an American company. Sweden, 
as shown by figures for 1915 and 1916, has been supplying a small 
amount of telephone goods to China, but its percentage is so small 
that it is omitted ill the table. 

It seems that the United Kingdom, despite the war and embargoes, 
is able to ship electrical goods to China. At present Japan is taking 
the lead in China’s electrical trade, though an investigation of 
Japan’s own figures for Japanese electrical goods shipped to China 
shows that a small portion of the total listed as imports from 
Japanese ports consists of foreign goods handled by Japanese 
agents, who transship them from that country. The Chinese cus¬ 
toms data are based upon the nationality of the port from which 
goods come, and if the invoices are Japanese and the bill of lading 
is from a Japanese port, the shipment would be classed as Japanese. 

The following table shows the imports of different kinds of elec¬ 
trical goods into China from specified countries in 1913, 1914, 1915, 
and 1916: 


Articles and countries. 


Electrical materials and fittings: 

Hongkong. 

United Kingdom. 

Germany. 

Sweden. 

Belgium... 

Russia and Siberia— 

By land frontiers. 

Amur ports. 

Pacific ports.. 

Japan. 

United States. 

Other countries. 

Total- 

Gross . 

Reexports. 

Net. 


1913 

1914 

1915 

1916 

Haikwan 
taels. 
173,980 
596,472 
845,422 
612 
70,515 

20,322 
4,198 
10,649 
392,749 
179,079 
113,072 

Haikwan 

taels. 

243,976 

735,870 

735,884 

5,678 

70,633 

12,290 
1,348 
13,302 
688,140 
134,733 
152,563 

Haikwan 

taels. 

259,585 

403,851 

1,412 

13,906 

8,428 

20,375 

1,442 

7,919 

845,053 

314,403 

238,041 

Haikwan 
taels. 
339,992 
710,744 

1,317 

12,760 

451 

7,088 

1,699,111 

614,321 

182,928 

2,407,070 

84,731 

2,322,339 

2,794,417 

36,598 

2,757,819 

2,114,415 

71,525 

2,042,890 

3,568,712 
137,141 
3,431,571 
















































36 


ELECTRICAL GOODS. 


Articles and countries. 

1913 

1914 

1915 

1916 

Propelling machinery (boilers, turbines, etc.): 

IT rm frlr nn cr . .... 

Haikwan 

taels. 

22,157 

Haikwan 

taels. 

146,215 

Haikwan 

taels. 

60,537 

Haikwan 

taels. 

17,917 

TTnitP.H TCin pt! nrn . . 

406,724 

660,334 

313,016 

322,360 


102,625 

77,209 
304 




1, 183 
26,387 


3,546 


40,035 



Russia and Siberia— 

2,212 

5 388 







Pacific ports . 

813 

19,240 

126,821 

4,021 

Japan .... 

45,426 

37,067 

76,276 

34,257 

United States _...._____... 

38,766 
6,668 

64,637 

1,962 

126,511 

130,825 

Other countries . 

7,726 

93,222 


Total- 

Gross ...........___............ 

658,349 
16,140 
642,209 

1,047,003 

14,719 

710,887 

606,148 

Reexports . 

34,362 

29,645 

Net. f. 

1,032,284 

676,525 

576,503 

Telegraph and telephone materials: 

pTonglrong . 

40,747 

96,597 

59,180 

78,862 

12,966 

United TTmednm .. 

260,518 

171,169 

87,541 


224,864 

227,765 


f?wede.n . 

14,852 

35,071 

■Rplcrinm . .... 

89,669 

1,600 

55,576 

31,917 


Russia and Siberia— 

By land frontiers. 

7,219 
1,954 

4,256 

Pacific ports . 

3' 150 

2 , 186 

1,125 

Japan . 

88' 668 

78,271 
12,598 
39,233 

64,673 

378,592 

United States . 

18'815 

22^ 644 

66,036 

Other countries. 

23^943 

74,266 

43,204 




Total- 

Gross . 

751,974 

603,323 
32,730 

435,639 

628,701 

Reexports. 

32,523 

25,436 

17,558 

611,143 

Net ". 

719,451 

570'593 

410' 203 



Grand total: 

Gross. 

3,817,393 

4,444,743 
84,047 

3,260,941 

131,323 

4,803,561 

184,344 

Reexports. 

133 394 

Net.". 

3,683,999 

4,360,696 

3,129'618 

4,619,217 



The classification of electrical goods in the Chinese import sta¬ 
tistics is so general that the American official figures are presented 
in the following table, showing exports of electrical goods from the 
United States to China and Hongkong for the fiscal years 1913, 1914, 
1915, 1916, 1917, and 1918: 


Years ended June 30— 


Articles and countries. 


1913 

1914' 

1915 

1916 

1917 

1918 

Batteries: 







China. 


$5,029 

84,092 

$14,065 

$20,330 

$31,125 

French Leased Territory. 


75 

Hongkong. 

. 

429 

286 

555 

439 

3,219 

Dynamos or generators: 







China. 

83,086 

13,089 

29,742 

46,989 

222,373 

109,973 

Japanese Leased Territory. 

1,181 

16,253 

150 

1,624 

9,171 

15,909 

Hongkong. 

4,555 

9,949 

4,454 

25,258 

1,135 

41,805 

Fans: 







China. 

24,613 

26,581 

48,516 

17,506 

32,570 

115,976 

Japanese Leased Territory. 

200 

3,694 


50 

168 


Hongkong. 

9,393 

30,376 

12,944 

25,552 

22,083 

57,544 

Insulated wire and cables: 







China. 


16,485 

35,428 

20,215 

115,525 

97,494 

Japanese Leased Territory. 


1,357 



143 

Hongkong. 


l' 784 

8,990 


1,010 

2,488 

Interior wiring, supplies, etc., including 





fixtures: 







China. 



362 

6,756 

20,596 

8,832 

Hongkong... 


340 

568 

554 

l' 193 

1 631 

Arc lamps: 







China. 



25 



271 

Japanese Leased Territory. 



643 







































































































CHINA 


37 




Years ended June 30— 


Articles and countries. 







1913 

1914 

1915 

1916 

1917 

1918 

Carbon lamps: China. 

15,390 

1,694 

?4S0 

662 

3 

$2,076 

3,389 

440 

$4,680 

67 285 

$36 


Metal-filament lamps: 

China. 

£Q AQ9 

27,437 

10,761 

TR R7R 

Hongkong. 

2'927 

5,053 

483 

2,328 

43,480 

42,10 

5,507 
2,105 
10,749 

126,143 

Meters and other measuring instruments: 
China. 



Japanese Leased Territory. 



379 

1,536 

3,401 

141,595 

Hongkong. 



66 

49,580 

Motors: 

China. 

17,550 

23 577 

Tsingtau. 

50 

Japanese Leased Territory. 

380 

13,898 

8,095 

156 

1,583 

48 

1,500 
14,762 

14,567 

34,593 
27,162 

Hongkong.. 

7,880 

1,677 

650 

30,575 

Telegraph instruments (including wire¬ 
less apparatus: 

China. 

Japanese Leased Territory. 


620 



Telephones: 

China. 

4,092 

11,795 

11,993 

3,000 

15,685 

116, 745 
42 

91,355 

379 

39,847 

Hongkong. 

5 ,723 

Transformers: 

China. 

16,S82 

3,399 

7,317 

56,573 

485 

Japanese Leased Territory. 


' 88 

Hongkong.. . 


1 890 

7 536 

5,221 

3,023 

38,440 

Electric locomotives: Japanese Leased 
Territory. 


33,813 


Gas engines: 

China. 

6,362 

2,914 

944 

7,976 

6 160 

24,130 

Japanese Leased Territory. 

500 

60 

Hongkong.. 

1,750 

3,594 

1,328 

2 426 

2,553 

13,310 

37,352 

Steam engines, stationary: 

China... 

802 

136,307 

8,263 

1,828 

Hongkong. 

507 


All other electrical machineiy, appli¬ 
ances, and instruments: 

China. 

63,817 

71,332 

47,445 

159,002 

281,263 

235,723 

169 

French Leased Territory. 

Japanese Leased Territory. 

22,315 

17,349 

1,682 

7,074 

23,142 

112,376 

46,395 

Hongkong.. 

22;812 

6,289 

7'553 

21', 627 

16'839 



Total: 

China. 

127,406 

325,289 

237,641 

424,272 

1,109,908 

997,680 

244 

French Leased Territory. 

Tsingtau... 


50 




Japanese Leased Territory. 

Hongkong. 

24,076 

52,620 

86,949 
62,749 

5,057 

48,842 

9,279 

117,023 

36,774 
78,038 

164,414 

246,535 


Grand total. 

204,102 

475,037 

291,540 

550,574 

1,224,720 

1,408,873 



The present total trade of China in electrical goods is not impres¬ 
sive, but however small it may be now, the manufacturers of the 
United Kingdom, Germany, and Japan have appreciated the possi¬ 
bilities of the field and have been awake to the fact that prepara¬ 
tions must be made in advance to take advantage of the market as 
it grows. With Germany temporarily eliminated from the field, the 
United Kingdom and Japan are competing for the commercial con¬ 
nections of that country before it is again able to offer goods in the 
market. The electrical manufacturers of the United States are 
beginning to realize the opportunities in China, but still they do not 
show the aggressiveness of other countries. 

CENTRAL-STATION DEVELOPMENT FACTORS. 

In all China probably not more than 90 or 95 cities and towns 
have electrical service, so far as available information shows. 
Some cities, such as Peking, Shanghai, Hankow, and Tientsin, have 
several plants, where the foreign and native sections of the city are 













































































38 


ELECTRICAL GOODS. 


served by different companies. There are also a few plants installed 
for power purposes, mainly by mining and manufacturing companies, 
as well as three street-railway systems operating stations for at least 
a part of their power. 

Only a Chinese can own land outside of a treaty port. This regu¬ 
lation prevents foreign promoters from coming in, building a plant, 
and selling it to a local organization after a period of operation, or 
a syndicate from owning and operating a string of plants throughout 
the country. Therefore when a foreign house aids a Chinese company 
financially its security for notes given is the bare physical system. 
The foreign house, however, can usually make some arrangements 
through its comprador that will enable it to exercise considerable 
control over a property bought up and resold to other Chinese. 

The Chinese take to electric light, and there are hundreds of towns 
that are good prospects. The fact that the purchasing power of the 
masses is low does not prohibit the installation of systems in cities to 
serve the class that can afford the service. The possibilities for elec¬ 
trical development are constantly being noted by American consuls 
in China, a recent typical report containing the following: 

It is certain that no branch of commerce offers greater opportunities of development 
than does the supplying and erection of electric-light plants, and to a less degree the 
construction of telephone systems within this consular district. There are more than 
a score of cities within the district that should have and would have electric plants 
if the matter was properly presented to them, and it is equally certain that at least 
this number would have plants were they able to convince the foreign manufacturers 
of the soundness of advancing the money necessary for the construction of an electric 
installation to meet the requirements of the place.® 

It does not always appear to be an actual lack of ready money 
with which to finance an electric undertaking that decides the question 
of carrying out a project in China. To some extent rich Chinese do 
not care to have only their own money in an undertaking. If for¬ 
eigners have some financial interest in it, they feel they will have the 
support of those nations should trouble occur. It is evident that the 
development of central-station business in China is not altogether a 
matter of selling generating apparatus and other equipment, though, 
on the other hand, there is considerable business open where financing 
considerations do not enter. 

It must be remembered that the standards according to which 
central stations are constructed tend to pave the way for future 
business. If a system is installed by a British house, it is likely that 
220/440-volt circuits will be used, that the bayonet socket will be 
employed, and that standard American supplies can not be sold to 
any extent. A German house will start the system out with German 
wiring standards, which again places Americans at a disadvantage. 
The Japanese tend to follow American practice more than do other 
nations, but are likely to use 50 cycles. The best plan for American 
electrical interests is to have a hand in the original installation. With 
a central station using American apparatus and a complete installa¬ 
tion made along American lines, with possibly an American-trained 
Chinese in charge, and periodical “ service” given by an American 
engineer, most of a company’s business should come to the United 
States. 


Extract from letter of Consul General Edwin S. Cunningham, at Hankow, in response to an inquiry. 



CHINA. 


39 


In connection with the development of central stations in China 
there might be an opportunity for an American syndicate to arrange 
with provincial governments to install plants for them in the larger 
cities, the plants to be owned by the provincial governments. The 
syndicate would aid in financing the proposition and as a part of the 
transaction would be given a 10 or 15 year lease on the property on 
a rental basis. The provincial government would pay a certain 
portion of the first cost of the plant, and the syndicate would take 
the rest out in installments from rentals, leaving a fair sum for the 
provincial government. Anything that brings in revenue to the 
government is welcomed, and it is believed that some such propo¬ 
sition would interest the provincial authorities and at the same time 
offer a good outlet for American goods, not only through the original 
installation but through the standards that would be established. A 
live operating organization could also show good net returns from the 
operation of such a system during the period of the lease. 

CENTRAL-STATION ENGINEERING AND COMMERCIAL PRACTICE. 

The details of engineering vary with the nationality of the company 
making the installation and the broader phases only can be discussed. 

The prime movers that have been most largely used in China are 
steam-engine or turbine units and crude-oil engines. There are a few 
gas-producer plants of small capacity, and this class of equipment 
seems to be taking better than one would expect. As far as could be 
learned, there are no water-power installations. The general tend¬ 
ency is to sell to the native lighting companies equipment that will 
be as simple and foolproof as possible. This feature is usually of 
more moment than high operating efficiency. Of course, in the case 
of the larger stations, which are under foreign supervision, these 
conditions do not hold and power-house equipment is purchased as 
for similar installations in the United States. 

Water-tube boilers are used to the greatest extent, and stokers are 
installed in most plants of any size to insure efficient firing. Coal is 
handled manually in'most cases, as would be expected with the cheap 
labor available, though large stations such as that at Shanghai have 
mechanical coal-handling equipment. 

From the electrical point of view there are no special features in 
power-plant practice beyond that of having many circuits controlled 
direct from the station, owing to the use of flat rates to small con¬ 
sumers and a consequent cutting off of service except during the 
night hours. 

Operating labor is cheap in China, but on the other hand more men 
are used about a station than in the United States. At an average 
small-capacity plant operated under foreign supervision the men 
were paid $9 to $12 Mex. per month, and were given quarters in 
addition. In a fairly large native owned and operated station, 
women were used in carrying coal from the storage piles into the 
boiler room and were paid 25 cents Mex. (then about 14 cents United 
States currency) per day. At a plant in Manchuria a peculiar use 
was made of this cheap labor. The boiler feed was normally taken 
from a well outside of the power house, but this had given trouble 
and a pump was temporarily installed at the river on a float. Instead 
of running a steam line down to this pump or using a motor, the 


40 


ELECTRICAL GOODS. 


pump was fitted ingeniously with a handle and a crew of four men 
engaged to pump water into the boilers, working alternately in pairs 
from 6 p. m. until 2 a. m. for between $9 and $10 small coin a month 
per man. Expert machinists and repair men used in the larger 
stations get $15 to $30 per month Mex., the latter being paid only to 
an unusual man. 

Coal costs at present are very high, and in one plant oil burning 
has been tried as a result. At Kowloon, just across the harbor from 
Hongkong, the lighting plant in June, 1917, was paying $18.50 Mex. 
per long ton delivered, for fair Japanese coal that before the war cost 
them only $7.50 Mex. delivered. There is Chinese coal within 50 
miles of Canton, it was said by the manager of the Kowloon plant, 
but they are unable to burn it on their chain grates. Tests of near-by 
coal have been conducted by the lighting plant at Canton, the 
manager of which is a Chinese engineer who took his degree in the 
United States, and these have proved satisfactory, from reports 
received. Cheaper coal in this southern part of China will greatly 
stimulate electrical development. In June, 1917, fair-grade Japanese 
coal cost $17 Mex. per ton at Foochow and $18 Mex. per ton at Amoy, 
these being treaty ports on the China coast between Hongkong and 
vShanghai. The coal used in the plant of the Shanghai Municipal 
Council cost about 6 taels per ton in 1916 but increased about 50 
per cent in 1917. At Peking, anthracite pea coal was costing $10.80 
Mex. per long ton delivered at plant. 

The commercial features of a Chinese plant must of course be 
adapted to the conditions existing, which means that service must 
be rendered to many consumers who have only one or two 10 or 15 
candlepower lamps installed. In such cases the investment in a 
meter is not justified, and a current interrupter has not been found 
satisfactory. The flat-rate system is therefore used, with the supply 
cut off during the hours of daylight. This prevents consumers on 
these circuits from using fans, which many wish to do. This load, 
small as it is, the station often needs badly. The average small 
station gives only night service, but in the larger cities the demand 
is insistent for day current, especially during the hot-weather season. 
The load factor of the native plants is very poor, as a rule. 

The tendency among native central stations is to get fairly high 
rates and to maintain a monopoly of the sale of all kinds of electrical 
supplies used within their territory. To keep out competitors in the 
wiring and supply business, the central stations resort to various 
practices, among them that of making an excessive charge for 
“inspection” or for “making connection,” where work is done by 
others. 

Rates for service vary with the locality and the supervision, rates 
being generally a little lower where a foreigner has more or less 
supervision over the operation. For flat-rate service the average 
charge probably runs between $1 and $1.50 Mex. per month for a 
16-candlepower lamp, though the unit used for house lighting is 
generally lower than this. Meter rates for lighting run from $0.20 
to $0.30 Mex., and power rates run from $0.10 to $0.15 Mex. 

The number of consumers in proportion to the total population is 
not very high in most of the purely native plants, being apparently 1 
to 3 per cent. Many plants, however, have been operating only a 
few years. Again, many plants need additional equipment and are 


CHINA. 


41 


refusing new business until it arrives, and in a few cases the central 
station has even been forced to disconnect some consumers, who had 
increased their business beyond the ability of the plant to handle it. 

CENTRAL-STATION MANAGEMENT AND RATES. 

As a rule Chinese, except those who have had experience abroad, 
do not make good managers for lighting systems. A practice that 
leads quickly to inefficiency is that of giving jobs to relatives and 
friends. This condition exists so frequently that it is said foreign 
companies who may make installations on long terms often stipulate 
in their contracts that they shall have a say as to the staff, and as a 
rule make it a point to place men of their own in charge of the plants. 
Another native characteristic that is the cause of the moderate net 
earnings shown in spite of high gross earnings and low operating 
expense is the practice of taking “ squeeze” out of everything from 
the coal to the consumer. An American operating engineer in China 
who acted as adviser to the Chinese management of another near-by 
electric-light plant was paid 100 taels permonth for the time he put in, 
but he noted that on the books of the company a charge of 250 taels 
per month was made for his services. These same general practices 
are carried out often in manufacturing enterprises conducted by 
Chinese and explain why many of them do not make a success of 
the undertaking. The “ squeeze ” being received by some influen¬ 
tial man in the organization through coal purchases is given as the 
reason why it is often difficult to get a Chinese-owned factory to 
change over to the electric drive. 

Chinese central stations generally pay fair dividends, and the stock¬ 
holders can not understand why they should not maintain the same 
rate regardless of conditions. During a revolutionary scare about 
two years ago the central station in one large city lost many con¬ 
sumers in the exodus to a near-by foreign settlement, most of them 
overlooking accounts due the lighting company. The earnings 
for the year dropped considerably and the books showed only a 
small profit for the year’s operation. No dividend had been earned 
and there was no money with which to pay one; but when the direc¬ 
tors, who among them held the great majority of the stock, held 
the annual meeting, they insisted upon paying themselves the usual 
dividend, borrowing the money from a bank in which likewise they 
were the principal stockholders. Charging off a certain amount 
annually for depreciation is not general among native stations. 

The plants operated in treaty ports by foreigners generally give 
good service and conduct their affairs along the usual lines. The 
central-station system owned and operated by the Shanghai Municipal 
Council is an exceptionally well-planned and well-managed property. 
The load has been growing so rapidly that the plant is severely taxed, 
the 1916 report showing a maximum recorded demand of 19,167 
kilowatts on a system with a generating capacity of 19,600 kilowatts 
normal rating. The total kilowatt hours generated amounted to 
77,560,664; the total kilowatt hours sold to 62,402,478, and the 
annual load factor for 1916, to 38.20, and for 1915, 40.8. The power 
load was 68 per cent of the total in 1916 and the traction load about 
6 per cent. The total connected motor load at the end of 1916 was 
20,340 horsepower. The total number of service connections was 


42 


ELECTRICAL GOODS. 


21,859. The plant makes a practice, as do many plants in China, of 
renting motors to consumers, the charge varying from 3 taels per 
month for a 1-horsepower motor to 18 taels per month for an 80- 
horsepower motor, the largest regularly scheduled. Electric radia¬ 
tors and cookers are rented also at 50 tael cents per month. 

The rates in Shanghai are very low. There is an alternative light¬ 
ing rate, one tariff being 11.5 tael cents per kilowatt hour, with a 
quantity discount varying from 5 per cent for a consumption of over 
1,000 kilowatt hours per month to 30 per cent for over 6,000 kilowatt 
hours per month. The other lighting rate reads u 0.175 tael per unit 
for the first hour and a quarter’s supply of maximum demand per 
diem during the month, 0.07 tael per unit for all further supply.” The 
rate for heating and cooking is 3 tael cents and for charging storage 
batteries, 4.1 tael cents. 

Power rates (except for elevator or hoist motors) are regularly 
scheduled as follows: 0.041 tael per unit when the units consumed 
are below 150 per horsepower per month; 0.036 tael per unit when 
the units consumed are equal to or over 150 per horsepower per month; 
0.033 tael per unit when the units consumed are equal to or over 200 
per horsepower per month; 0.029 tael per unit when the units con¬ 
sumed are equal to or over 250 per horsepower per month. 

Special rates are “ quoted for three-phase bulk supply to mills, fac¬ 
tories, shipyards, etc., on application,” and in such cases the rates 
dependent upon the load factor go down as low as 0.01 tael, it is 
reported. 

BOILER PLANT, STOKERS, PUMPS, ETC. 

Most power plants are using either water-tube or Lancashire-type 
boilers. The former are being installed in practically all of the later 
stations and give good results under the transportation, erection, and 
operating conditions that obtain in China. Fire-tube boilers are now 
being used practically only by industrial plants. The general prac¬ 
tice is to use boiler pressures from 160 pounds to a maximum oi 200 
pounds for central-station work, and where superheat is provided the 
steam is usually heated about 100° to 150° Fahrenheit. Economizers 
are often installed, especially where the plant has British advice or 
supervision. 

' In normal times most of the water-tube boilers come from England, 
even where the generating equipment and everything else are American. 
The boilers are the product oi Babcock & Wilcox (Ltd.), of London. 
Complaint was made that American boilers are much higher priced 
than British, there being a difference of as much as 30 per cent. It 
does not seem that American water-tube boiler makers have taken 
the market very seriously and it is believed that more of this business 
can be obtained. Only one American manufacturer appeared to be 
active in this field. The stokers will probably come from the same 
country as the boiler, except in the case of the large plants. To do 
anything in this line it will be necessary for manufacturers of these 
classes of equipment to combine. In fact, to do anything in boiler- 
room equipment, the China agent should have a complete line of what 
is required, including feed pumps, economizers, valves, piping, etc., 
and manufacturers should bear that in mind when arranging for rep¬ 
resentation in this market. 


CHINA. 


43 


STEAM TURBINES. 

At the present stage of electrical development in China there is a 
limited demand for large units, say from 1,000 to 10,000 kilowatts’ 
capacity, confined to a few of the largest cities, such as Shanghai, 
Hongkong, Canton, and Peking, and a small number of large indus¬ 
trial undertakings, such as mines and steel works. 

In the present stations there is a wide variety of turbine makes, 
British, German, American, and Swiss manufacturers being repre¬ 
sented. British turbines seem to be slightly in the majority, with 
American machines following closely and German units next. 

Of late Japanese houses are beginning to submit quotations on 
Japanese turbines, built under the English Parsons patents. Amer¬ 
ican engineers claimed that the Japanese sometimes enter bids with 
prices about the same as the American but with very short deliv¬ 
eries. As far as is known, however, no Japanese turbo sets are used in 
China. 

While the American and the British turbine sets have given good 
satisfaction, two German turbo units in the Shanghai plant have been 
a source of considerable trouble, developing both electrical and me¬ 
chanical faults. The turbine blading in both of two 2,000-kilowatt 
units was bad, owing to the metal used for blades, and both machines 
went out of commission after being in service for less than two years. 
The winding of the alternator has broken down also. The annual 
report of the Shanghai lighting plant for 1915 shows the annual repair 
costs for various units in their two plants, and a comparison between 
the German units and the British units nearest in capacity is inter¬ 
esting. The figures follow: 


Make of units. 

Capacity. 

Years in 
service. 

Yearly cost 
of repairs 
and main¬ 
tenance. 

Parsons (British). . 

Kilowatts. 

1,000 

1,000 

2,000 

2,000 

9 

Taels. 

380 

Willans & Robinson (British). ... 

8 

396 

Allgemeine Elektricitats Gesellschaft (German). 

11 

2,550 

2,140 

Allgemeine Elektricitats Gesellschaft (German). 




During the summer of 1916 a 5,000-kilowatt turbine unit of the 
same German make as the 2,000-kilowatt sets also broke down. 
Complaints have been made since the war began in Australia and in 
other British territory of both electrical and mechanical troubles 
developing in German turbines. Considerable publicity has been 
given to all these breakdowns and in his annual report to the Shanghai 
Municipal Council for 1915 the chief electrical engineer makes the 
following comments, which will have some influence in the sales situa¬ 
tion in China, since the Chinese buyer is afraid of a "‘chop” with a 
bad name: 

Since these turbines were installed trouble with machines of similar make have 
come to light in connection with machines in Australia and England. Not only have 
the German turbines proved defective in Shanghai, but several transformers have also 
shown marked inferiority to either British or American ones in service. This is not 
a mere generalization; the truth of the statement is beyond dispute. 

It is hoped these remarks, for which from the purely commercial aspect it would 
have been preferred there had been no cause, may be carefully studied by prospective 













44 


ELECTRICAL GOODS. 


buyers and users of electrical plants throughout China. It is not perhaps unfair to 
claim that on account of the relative magnitude of the Shanghai electricity under¬ 
taking and its large foreign staff of engineers, machinery may receive better treatment 
and more careful supervision than can be given in smaller undertakings either in the 
outports or interior cities of China. This then leads to the conclusion that nothing 
but the most reliable machinery should ever be considered for such undertakings. 

As an indication of the broadness of the competition for large tur¬ 
bine business placed in 1915 by the Shanghai Municipal Council, as 
well for comparison of prices and guaranteed steam consumptions, 
the following table, showing bids on steam-turbine units for the city, 
has been taken from the 1915 report of the chief electrical engineer 
for the municipality’s system: 


Companies. 


Alternators. 


Fraser & Chalmers. 

Escher W yss. 

Willans & Robinson. 

Oerlikon. 

Dick-Kerr. 

D. Adamson. 

C. A. Parsons. 

Richardsons-Westgarth... 

Howden & Co. 

Willans. 

British Westinghouse. 

Oerlikon. 

Beliss. 

Brush Co. 

Howden & Co. 

American company “A”.. 

Dick-Kerr. 

Fraser & Chalmers. 

British Thompson-Hous- 
ton. 

Willans. 

Escher-W yss. 

Howden & Co. 

American company “A”.. 

Oerlikon. 

Parsons. 

American company “B”.. 
Richardsons-Westgarth... 

Adamson. 

Brush Co. 


Vickers. 

Brown- Boveri. 

Siemens. 

Oerlikon. 

Dick-Kerr. 

Siemens. 

Parsons. 

Siemens. 

Siemens. 

Siemens. 

Westinghouse. 

Oerlikon. 

Vickers. 

Brush. 

Vickers. 

American.. 

Dick-Kerr. 

Vickers. 

British Thompson- 
Houston. 

Siemens.. v .... 

Brown-Bo vcrj. 

Siemens. 

American. 

Oerlikon.;_ 

Parsons. 

American.. 

Siemens.. 

Siemens.. 

Brush. 


Kilo¬ 

watts. 

Revo¬ 

lutions 

per 

minute. 

Price.o 

Weeks 
re¬ 
quired 
for de¬ 
livery. 

Steam 
con¬ 
sump¬ 
tion in 
pounds 
per 
kilo¬ 
watt 
hour. 

Price 

per 

kilo¬ 

watt. 

5,000 

3,000 

$77,908 

27 

13.00 

$15.58 

5,000 

3,000 

80,044 

26 

12.62 

16.01 

5,000 

3,000 

81.417 

52 

12.85 

16.28 

5,000 

3,000 

82,487 

30 

12.78 

16.50 

5,000 

3,000 

87,772 


13. 20 

17.55 

5,000 

3,000 

89,514 

52 

13.80 

17.90 

5,000 

3,000 

90, 298 

44 

12. 25 

18.06 

5,000 

3,000 

91,782 

52 

12.52 

IS. 36 

5,000 

3,000 

91.977 

38 

13. 60 

18.40 

6,000 

1,500 

96,975 

36 

12. 75 

16.16 

5,000 

3,000 

102,859 

33 

15.00 

20.57 

7,000 

3,000 

104,382 

30 

12. 71 

14. 91 

7,000 

1,500 

114,942 

35 

13.05 

16. 42 

6,000 

1,500 

116,845 

47 

12.90 

19.47 

7,500 

1,500 

119,740 

48 

13.05 

15.96 

7,500 

1,500 

125,313 

30 

12.55 

16.70 

8,000 

1,500 

133,372 


13.10 

16.67 

10,000 

1,500 

133,474 

50 

12.75 

13.35 

10,000 

1,500 

134,092 

39 

12.50 

13.41 

10,000 

1,500 

138,024 

52 

12.55 

13.80 

10,000 

1,500 

148,672 

40 

12.65 

14.87 

10,000 

1,500 

154,220 

52 

12.95 

15. 42 

10,000 

1,500 

154,366 

32 

12.85 

15. 44 

10,000 

1,500 

155,305 

37 

12.61 

15.53 

10,000 

1,500 

158,672 

52 

11.90 

15. 87 

10,000 

1,500 

164,391 

25 

13.50 

16. 44 

10,000 

1,500 

165,383 

52 

12.50 

16.54 

10,000 

1,500 

173,511 

60 

12.80 

17.35 

10,000 

1,500 

193,249 

72 

12.65 

19.32 


a C old converted from pounds sterling. 

The turbines were to operate under 180 pounds steam pressure 
with a superheat of 200° F. The alternators were to be 6,600-volt, 
3-phase, 50-cycle machines. Contracts were placed for one 5,000- 
kilowatt unit with Fraser & Chalmers, one 10,000-kilowatt set with 
an American company, and one 10,000-kilowatt set with C. A. 
Parsons. The British 10,000-kilowatt set shows better steam econ¬ 
omy than does the American unit, due probably to the fact that the 
former is working on standard frequency, whereas for the American 
set 50 cycles is a variation from usual practice. The American unit 
arrived in good season, but the British manufacturers were apparently 
not fulfilling their promises of shipment as noted in contracts. 

While there is a restricted field for large turbine sets, there is a 

f ood opportunity for small sets ranging from about 100 to 500 
ilowatts. One of the large American electrical manufacturers is 









































































CHINA. 


45 


pushing this kind of unit very hard among native central stations 
and is meeting with good success, the simplicity of the sets finding 
favor among the Chinese. As yet this manufacturer has apparently 
had the field to himself in this range; no units of other makes were 
seen. 

STEAM ENGINES. 

For small stations, with units running up to 200 kilowatts, steam 
engines have been used much in the past, though in South China 
the higher price of coal has brought about a tendency to install 
internal-combustion engines. One trouble that is experienced from 
time to time in native-operated stations is the blowing off of cylinder 
heads, due to water carried over as a result of careless handling of the 
boilers. This has resulted in the installation of steam turbines, 
usually with lower economy, in a number of small stations, which 
might have been expected to be the field for steam-engine business 
exclusively. 

Most of the steam engines in service in China are of British make 
and of the vertical high-speed type; the Beilis & Morcum make is 
the most common and there are some Allens. A few German engines 
of similar design were also seen, made by A. Borsig of Berlin. Ameri¬ 
can engine builders do not seem To be in the market. 

In the United States there is no type of engine of exactly the same 
class as these British “quick-revolution” engines, but it is believed 
that the unaflow engine can be sold in the China market where coal 
conditions do not handicap a steam plant too much. A unaflow 
engine is simple and shows good operating economy and should 
make a fair over-all showing against the gas-producer plants that 
British houses are offering for small-capacity installations. 

Data as to cost, etc., for a typical line of British high-speed vertical 
engines were given in the writer’s report on Australia.® The same 
class of apparatus is much used in China and the same cost data 
apply generally. A 200-kilowatt Borsig (German) set was seen in 
operation in a Chinese plant. The engine was a vertical compound, 
running at 375 revolutions per minute and direct-connected to a 
200-kilowatt, 5,250-volt, 50-cycle, 3-phase alternator. The set 
installed cost $33,000 Mex. (about $14,850 then) in 1910. It is very 
difficult to get reliable data on apparatus in such cases as these, since 
the figures given may include various other pieces of equipment on 
the same contract, of which the present operating manager or super¬ 
intendent may not know. The Borsig engine does not appear to be 
so good an engine as the more popular British engine in the same class. 
There are three 200-kilowatt units in the plant referred to, and one 
of the two units seen in operation had a very heavy vibration, which 
it was said had been the case ever since the unit was installed. In 
another plant a foreign engineer complained of the difficulty of getting 
at the shaft bearings of these engines for adjustment. 


CRUDE-OIL ENGINES. 


In South China especially, that is, in the territory tributary to 
Canton, Hongkong, and Swatow, there have been a number of 

O Published as Special Agents Series No. 155. The report may be obtained for 15 cents from the Super¬ 
intendent of Documents, Government Printing Office, Washington, D. C., or from any of the district 
or cooperative offices of the Bureau of Foreign and Domestic Commerce. 




46 


ELECTRICAL GOODS. 


installations of internal-combustion engines, owing to the fairly high 
price of coal even in normal times. Now, of course, the coal situation 
is much more serious on account of the shortage of shipping. Crude 
oil for this territory comes from Borneo and Sumatra to a great 
extent and is sold (summer of 1917) for $32 Mex. per long ton delivered 
at Canton. A fair grade of coal prior to the war cost $8 to $9 Mex. 
per ton in the same port, and good steam coal runs as high as $12 
Mex. in normal times. There is plenty of Chinese coal within easy 
transportation distance of Canton if modern means of transportation 
were available. However, as conditions are in normal times, the 
crude-oil engine can show a higher operating efficiency in small 
units than can a steam plant, and this nas resulted in a number of 
installations of both semi-Diesel and standard Diesel cycle engines. 

In the first class, the Swedish Bollinder engine seems to have had 
the market almost to itself in the past, as far as foreign competition 
was concerned. This engine is of the two-cycle type and is generally 
similar to American engines of this type but apparently more reliable 
in operation than the general run of such engines made in the United 
States. Chinese operators were handling the Swedish engines with¬ 
out serious difficulty. A unit seen in operation was carrying a widely 
swinging electric light and elevator load with good regulation, and a 
second unit was started and brought up to speed with no bother or 
delay. On the whole the engine seemed to live up to its good repu¬ 
tation in the market. These engines were in the isolated plant of a 
Chinese department store and have no foreign supervision. They 
have been operating for several years with little expense for repairs, 
according to the man in charge. 

Prices on these engines were as follows in the summer of 1917: 
$2,492 f. o. b. Stockholm, plus 1.5 per cent for packing, for an 
80-horsepower, 2-cylinder engine, 225 revolutions per minute, weigh¬ 
ing 20,400 pounds, and using 5.78 Imperial gallons (6.94 American 
gallons) of crude oil per hour when operating at rated load; $9,198 
1. o. b. Stockholm, plus 1.5 per cent for packing, for a 320-horsepower 
4-cylinder engine, 225 revolutions per minute, weighing 43,000 pounds. 
The prices figure out respectively $31.15 and $28.74 per horsepower 
(excluding from consideration the 1.5 per cent for packing) for the 
two sizes of this engine. 

This Bollinder engine has operated so satisfactorily that it has 
been regularly copied by a Chinese foundry and machine shop near 
Canton, and there are said to be quite a number of these native-made 
engines out. They are a precise duplicate of the Bollinder engine, 
even to a reproduction of the name, it is said, and sell for considerably 
less than the real Bollinder. While the workmanship is rough, 
reports indicate that they operate with fair satisfaction, though with 
the materials employed it is likely that they will not show very long 
life. 

In the true Diesel-engine class there is more competition, the Swiss 
Sulzer, the Mirlees (British), the Willans (British), and a well-known 
American engine being in use in this market. There are two central 
stations with a considerable capacity of Diesels installed. One is 
that at Canton (Chinese-owned), where there are three 140-kilowatt 
Mirlees-British Westinghouse, two 350-kilowatt units by an Amer¬ 
ican maker, two 140-kilowatt Willans-Dick-Kerr, one 200-kilowatt 
Hicks-Hargreaves-Vickers, * and one 140-kilowatt Sulzer-Allgemeine 


CHINA. 


47 


Elektricitats Gesellschaft set—a total capacity of 1,740. This plant 
has several steam-engine units and has recently contracted with an 
American manufacturer for two large turbine sets and other plant 
equipment, which will give it a modern steam station. The other 
large Diesel plant is at Macao, a small Portuguese colony on former 
Chinese territory near Hongkong. This plant has an installation 
of 1,200-kilowatt Sulzer Diesels in three or four units and is foreign 
owned, with a foreign chief engineer at the plant. 

While there is said to be no great difference in the fuel economy 
of the various makes of Diesel engines, the comment was made that 
American Diesels have less liberal bearings than foreign designs and 
that their flywheel inertia is less. In 1914, before the war, bids were 
asked in China for some large Diesel engine units and the following 
data are taken from quotations made at that time: 

Carrels. —1,000 brake horsepower, 4-cylinder, 2-cycle, 180 revolu¬ 
tions per minute, direct-connected to alternator; price of engine 
alone, delivered to specified port in China, $38,803, or $38.80 per 
brake horsepower; price of set, with 795 kilovolt-ampere generator, 
delivered, $43,958, or $43.96 per brake horsepower of engine. 

American unit. —1,000 brake horsepower, 6-cylinder, 4-cycle, 
180 revolutions per minute, direct-connected to alternator; price of 
engine alone, delivered to specified port in China, $53,409, or $53.41 
per brake horsepower; price of set, with 750 kilovolt-ampere generator, 
delivered, $60,008, or $60 per brake horsepower of engine. 

Sulzer. —1,200 brake horsepower, 4-cylinder, 2-cycle, 150 revolu¬ 
tions per minute, direct-connected to alternator; price of engine 
alone, delivered to specified port in China, $44,354, or $36.96 per 
brake horsepower; price of set, with 790 kilovolt-ampere generator, 
delivered, $53,880, or $44.90 per brake horsepower of engine. 

Hicks. —1,066 brake horsepower, 6-cylinder, 4-cycle, 150 revolu¬ 
tions per minute, direct-connected to alternator; price of engine 
alone, delivered to specified port in China, $47,656, or $44.70 per 
brake horsepower; price of set, with 790 kilovolt-ampere generator, 
delivered, $54,063, or $50.71 per brake horsepower of engine. 

Tosi. —1,100 brake horsepower, 6-cylinder, 4-cycle, 180 revolutions 
per minute, direct-connected to alternator; price of engine alone, 
delivered to specified port in China, $49,033, or $44.57 per brake 
horsepower; price of set, with 790 kilovolt-ampere generator, deliv¬ 
ered, $58,559, or $53.23 per brake horsepower of engine. 

It is apparent that the foreign engines of the 4-cycle type run 
lower in price generally than the American unit in the field. 

Taking the crude-oil engine field as a whole, it seems that American 
semi-Diesel engines can be sold in China in competition with other 
foreign makes, though if Chinese shops are allowed to continue 
copying the Bollinder, this will have some little effect on the sale of 
foreign engines. It is believed that 4-cycle types in this class that 
have been developed in the United States and put on a manufactur¬ 
ing basis should take well. It must be understood, however, that 
there is only a fair market in the electric-lighting field. 

True Diesel engines will hardly find any great future in this market 
if coal costs become more nearly normal. The load factor of a native 
system is naturally very low because of the lack of a power load, and 
where this is at all realized, a Diesel will hardly be the proper type 
because of the high cost per brake horsepower and the resultant 


48 


ELECTRICAL GOODS. 


large overhead burden that each kilowatt hour must carry. A 
Diesel, also, should have more skilled attention than any other type 
of prime mover in order to maintain efficiency. In the Diesel 
business that will be open, American makers as a rule will have to 
meet foreign prices more closely than they have in the past in order 
to take much business. 

GAS-PRODUCER PLANTS. 

British houses have pushed gas-producer plants in China for small 
installations and have been fairly successful. The service a native 
plant is called upon to give is not so exacting as in a foreign com¬ 
munity, and a system may shut down for a few days to make repairs 
without much criticism and without having the municipality try to 
cancel its franchise—which could not be done in any case because 
franchises are granted by the central Government. These conditions 
may explain why gas-producer plants are apparently operating satis¬ 
factorily where an American engineer would hesitate to advise their 
installation. Another contributing factor is the character of the load 
on a small native system. There are probably no motors larger than 
fan motors on the lines and the lighting is mainly on flat rate, so that 
the load is very constant and regulation troubles—even if they were 
regarded as worth bothering about in small systems in China—are 
not aggravated by a swinging load. 

As stated, several British houses have pushed this class of plant 
strongly, one of them at least always having a complete 75-kilowatt 
set in stock in Hongkong, as well as various repair parts. Coal is the 
usual fuel, but one British house has sent to England a shipment of 
rice husks and experiments were being conducted with a view to em¬ 
ploying this waste material as fuel. It was said that the experiments 
were progressing favorably, and if fair success is attained this will be 
a strong argument for the use of producer plants for 50 to 100 kilowatt 
plants in South China, where coal is relatively dear. 

No American gas engines were met in this market. The manager 
of the branch office of a British electrical manufacturer in Hongkong 
said that early in 1917 he had tried to get gas engines from the 
United States on account of the difficulty of "obtaining them from 
England. The figures quoted by a large American manufacturer 
were almost double those of the British engine he regularly handled. 
The manufacturer he had approached, however, was loaded down 
with work at that time and from quotations seen in other places 
during the course of this investigation, it is evident that this manu¬ 
facturer makes it a practice to ‘Toad” his prices to an extreme point 
when the works have all the orders they can take care of. 

For small interior-town systems where the transportation of coal is 
difficult, it is believed gas-producer installations will continue to take 
a fair amount of the small-unit business, and American manufac¬ 
turers, if aggressively represented in the field, can obtain some of it. 

WATER WHEELS. 

So fas as is known, water power is not used for the generation of 
electricity anywhere in China, though there are reported to be some 
installations of native wheels employed in driving small mills. 


Special Agents Series No. 172. 



FIG. 1.—POLE LINES IN FOREIGN SETTLEMENT OF HANKOW. 



FIG. 2—DISTRIBUTION SUBSTATION IN 
FRENCH CONCESSION, SHANGHAI. 



FIG. 3.—POLE SETTING USED 
IN SHANGHAI. 
















Special Agents Series No. 172 



FIG. 4.—PORTABLE LOW-TENSION TRANSFORMER SUBSTATION USED BY 

CHINESE SYSTEM. 



FIG. 5.—WIRING IN BANK MANAGER’S OFFICE IN PEKING 























CHINA. 


49 


There are numbers of water-power sites outside of the central 
alluvial plain, but the electrical-market conditions in these parts of 
China will hardly warrant any great development for some years to 
come. However, there are often great mineral resources in the same 
general territory where the water-power possibilities exist, and if 
these are developed on a large scale they should offer a good market. 

Along the China coast south from Shanghai there appear to be 
many small sites not far distant from cities of fair size, and it is likely 
that some low-capacity installations can be made in that part of the 
country. No data were obtainable, nor could they be obtained 
without personal reconnaissance of many months’ duration. The 
statement made is based upon a knowledge of the general topography 
and on information as to the flow of the rivers and streams, gathered 
from interviews with people who have been through the country here 
and there. 

Within 100 or 150 miles of Canton there are said to be a few fair 
sites. One of these has been investigated a little by a Chinese who 
lived in the United States for many years and who estimated the 
power available at 10,000 kilowatts. Questioning as to the width 
and depth of the stream, the current, and the fall, tended to show, 
however, that his estimate was extremely optimistic. Nevertheless, 
in the southern coastal section of China, the topography is such that 
fair heads should be possible; the rainfall is high (44 inches per annum 
at Shanghai and 84 inches at Hongkong), and the humidity is high, 
so that evaporation will not be an unusual percentage. On the other 
hand, land that may be flooded in river valleys will be valuable and 
existing irrigation systems will have to he reckoned with, which may 
discourage native promoters from such undertakings. 

The greatest potential water powers are found in the mountainous 
sections west of the alluvial plain of China. The rivers here have 
fair volume, and, emerging from the lofty mountain ranges of the 
Tibetan border, are said to make high heads possible. In this sec¬ 
tion, however, mining development must come before the water 
power can be commercially utilized. 

Taking the situation as a whole, the present possible market for 
hydroelectric apparatus lies in developing small sites in the south 
coastal territory, such sites being necessarily near cities and not 
costing a great deal to develop. The poor load factor of a Chinese 
electrical system does not permit any great capital expenditure. 

GENERATORS, SWITCHBOARDS, AND SWITCH GEAR. 

Generators and switchboards as a rule go to the seller of the prime 
mover in the case of a small installation anywhere, and as the average 
plant in China at present is of small rating there is little open generator 
or switchboard business. Nevertheless, since the beginning of the 
war quite a number of small belted-type generators have been sold 
to China by American manufacturers. This was due to the fact that 
British houses, from whom most of this class of orders has come, were 
unable to get apparatus promptly from England and took care of 
their business in China by having buyers in the United States ship 
out generators, and engines as well in a few cases, it is understood. 
In normal times probably not many small separate units will be sold 


70005°—18-4 



50 


ELECTRICAL GOODS. 


to China, except where some American house acts as representative 
for a line of engines and generators both. In alternating-current 
designs American manufacturers can meet any foreign competition, 
but in direct-current lines British makers generally quote lower 
prices. 

Switchboards installed in native plants are as complete as those 
in American plants of equal capacity, and in the case of many stations 
furnished by English houses they are better equipped than those in 
the usual small-town American power house. This situation is due, 
no doubt, to the fact that most of the native stations have been built 
in recent years. 

Outside of two or three of the largest cities, switch-gear equipment 
is limited to the oil circuit breakers on the switchboard. In Shanghai 
the municipal plant necessarily gives considerable attention to switch¬ 
ing equipment and is modern in its practice. Both 6,600-volt and 
22,000-volt gear is installed in connection with the recent large addi¬ 
tional generating capacity provided. As an indication of the compe¬ 
tition met in China m this class of apparatus the following data are 

f iven on tenders received in Shanghai for the 22,000-volt switch gear: 

.merican company (A), $27,252; Ferguson Pailin & Co. (Ltd.), 
$31,048; American company (B), $34,630; British Thompson- 
Houston Co., $35,200; Bertram Thomas, $43,555. 

The tender of the British Thompson-Houston Co. was recommended 
for acceptance, and in this connection the following statement is 
given in the 1915 report of the electricity department of the munici¬ 
pality: 

The tender of the British Thompson-Houston Co. (Ltd.), at £7,233, is recommended 
for acceptance. In connection with this recommendation a few remarks in explana¬ 
tion of the reasons for advocating the acceptance of this tender are given. 

It is of the utmost importance that the switch gear of the main generating station 
and also at the important Fearon Road substation should be of the highest quality, 
as the successful operation of electricity supply depends very largely upon the switch 

gear. The tender of the-Co. (American) is considerably lower in price, and 

the layout, although not, in our opinion, as good as the British Thompson-Houston 
Co.’s, which adheres in almost every detail to the design prepared in the specification, 
is nevertheless a good one; but from experience we know that in placing orders for 
large and important switch gear such as this modifications are often necessary from 
time to time during construction, and we feel that it is better to place the order with 
a firm who are in direct touch with the London office. There is also another reason 
for preferring the British Thompson-Houston Co.’s offer, inasmuch as this company 
has carried out a considerable amount of work in England in connection with cable 
control designed on what is known as the split-conductor system (which will be referred 
to later in this report when dealing with the underground-cable contracts). This 
system, as far as we know, has only been applied in Great Britain and on schemes 
designed by British engineers, and is not used in America. We consider it advisable 
to place the order for this important work with a firm which has already manufactured 
similar types of split-conductor apparatus. 

For the abpve reasons, having carefully considered the various tenders, we recom¬ 
mend accepting that of the British Thompson-Houston Co., of Rugby, at a total cost 
of £7,575. This figure, it will be observed, is higher than shown in the above list of 
tenders, viz, £7,233; this additional cost is entailed by our adoption of the split- 
conductor cable system. If all the other tenderers requoted for split-conductor switch 
gear their prices would be proportionately increased. 

On 6,600-volt switch gear the tenders received were as follows, the 
British Thompson-Houston Co. again obtaining the business: British 
Thompson-Houston Co., $7,616; Ferguson, Pailin & Co. (Ltd.), 
$8,200; American company (A), $9,806. 



CHINA. 


51 


TRANSMISSION AND DISTRIBUTION EQUIPMENT—DISTRIBUTION 
PRACTICE. 

There is practically no transmission work in this market, the total 
that could be placed in that class being the 22,000-volt construction 
of the Shanghai Municipal Council, which is, however, really high- 
voltage distribution. Should water-power development be taken up, 
there will necessarily be transmission-line construction; but outside 
of that the transmission work for some time will consist only in 
extending city primary lines to outlying towns at no great distance 
from the central station. Therefore there is no market now nor for 
some time to come for apparatus and materials for high-voltage line 
work. 

Distribution systems, outside of Hongkong and Shanghai, are 
generally simple in layout, are overhead systems, and, barring char¬ 
acteristics introduced by the nationality of the house installing the 
original job, are quite alike. The British have tended toward direct 
current for small systems more than have others, without the cus¬ 
tomary battery installation, however. For very small jobs the British 
have been using 100 volts or lower, but most of the direct-current 
systems in China are either two-wire 220 or three-wire 220/440 volts. 

In alternating-current work, which appears to be gaining ground 
rapidly, the lamp voltage is generally 100 or 110, with both two-wire 
and three-wire secondaries. In primary voltages there is considerable 
variation. The German and British houses—especially German— 
have seemed to favor 5,000 volts; the Japanese are using 3,300 volts; 
and the American houses push 2,300 for primary voltage. Plants 
installed by American houses operate at 60 cycles, while most others 
are 50-cycle plants, though some are of the former frequency. 

The Engineering Society of China is trying to bring about a stand¬ 
ardization of voltages used in that country. A committee appointed 
to make recommendations submitted the following: 

(1) That generation and distribution generally shall be on a three-phase system at 
50 or 60 cycles per second. 

(2) That distribution shall be carried out generally on the four-wire, three-phase 
system with grounded neutral at a pressure of 250 volts between one phase and neutral; 
that is, 440 volts (approximately) between phases. 

(3) That the standard pressure for domestic lighting and similar supply shall be 250 
volts. 

(4) That when it is not desirable or economical to use a four-wire, three-phase 
supply, then a three-wire system with neutral grounded or a two-wire system with one 
side grounded shall-be adopted, in all cases the pressure to ground being 250 volts. 

(5) That the use of direct-current systems shall be discouraged and they shall not be 
allowed for systems either involving over 50 kilowatts in rating or having feeders of 
over a half mile in length. 

(6) That no fuses or switches shall be allowed in the neutral wire. 

(7) That where direct-current systems are essential, the generation and distribution 
shall be on the three-wire system at 500 volts between outers, the neutral being 
grounded. 

About the time that this matter was being taken up the war came 
on, and since then little has been done apparently. It is not within 
the province of this report to comment upon the standards recom¬ 
mended; they are presented as the possible tendency in the country, 
in addition to observations made of the existing practice. 

Wooden poles are generally used for line construction, though in 
Kowloon, Hongkong, and Peking steel poles were seen, and in Shang- 


52 


ELECTRICAL GOODS. 


hai (French concession mainly) concrete poles. Tubular steel poles 
are used for trolley work. Cross-arm construction is used to the 
greater extent probably, though there are many cases where the wires 
are carried on brackets as in Europe. Insulators, as a rule, are por¬ 
celain with steel pins. Distribution transformers are in most cases 
pole type, though to some extent low-tension district substations are 
used, following European practice. 

Outside of the foreign districts street lighting is not well organized 
except where a foreigner is in charge of the plant. Few arc lamps are 
still in service, most of the units being incandescent lamps, often 
gas filled. Where American plants have been installed the lighting 
is series, but probably in the majority of other installations multiple 
lighting is adopted. The practice with regard to reflectors varies 
from having none at all to having the latest type used in the United 
States. On one system operating an up-to-date turbine station the 
street-lamp installation consisted of a 3-foot piece of 2 by 4 inch 
lumber nailed to a pole, at the outer end of which was screwed a 
11 batten-lamp holder’’ (a bayonet socket with a flat back for mounting 
on walls of a room). When asked the reason for using the bayonet 
socket outdoors, whereas the screw socket was standard indoors, the 
manager said that if he did not use bayonet-base lamps for street 
lighting his consumers would steal them. In the majority of native 
cities a plain gooseneck lamp support is used, with an enameled para¬ 
bolic reflector, though a number of American radial-wave-type 
reflectors have been sold in China. 

Pole-type switches are refinements to which the native central 
stations have not yet come. Line-type lightning arresters are used 
somewhat, but not to the extent that good practice dictates. Figure 
2 shows typical line construction seen in foreign settlements in China. 

UNDERGROUND CABLE. 

There is practically no underground work outside of Shanghai and 
Hongkong, and it requires prophetic vision to judge when there will 
be a general market for such materials. The present buyers are 
mainly British engineers, and naturally they lean toward British 
standards and British goods. 

Shanghai has considerable 6,600-volt cable and is installing some 
22,000-volt split-conductor cable for tie lines between stations. This 
latter is in connection with the 25,000-kilowatt increase in plant 
capacity that is being carried out. While the market for cable in 
China is extremely limited, it is of interest to note bids received at 
Shanghai from representative cable makers of the world, as follows: 


Companies. 

Schedule 
A—actual 
tender. 

Schedule 
B—ad¬ 
justed. 

Companies. 

Schedule 
A—actual 
tender. 

Schedule 
B—ad¬ 
justed. 

American company (C). 

$164,993 

181,168 

8168,999 

178,440 

American company I'D). 

$201,714 

$201,451 

Siemens Bros. (British). 

Calendars Cable Co. (joint 

British Insulated Wire & 
Helsby Cables Co..„. 

186,251 
188,908 

186,151 
189,698 

boxes split, horizontally) 
(British). 

213,856 
215,604 

211,482 
213,229 

■Johnson & Phillips (British)... 

Callenders Cable Co. 

W. T. Henley’s Telegraph Co. 
(British). 

196,400 

193,872 

Union Cable Co. (British). 

W. T. Glover & Co. (British).. 

230,772 

232,789 

228,053 

231,322 

Pirelli (Ltd.) (Italian). 

184,172 

194,190 





















CHINA. 


53 


The specifications called for 40,000 yards of 0.15 square inch 
area, three-conductor, paper-insulated, armored cable for 22,000 
volts working pressure, with jointing boxes, materials, etc. Schedule 
A shows the actual bids received and schedule B shows the figures 
reduced to common copper and lead bases. None of the tenders 
was accepted, however, as it was decided that a split-conductor 
cable should be laid, so that the split-conductor system of cable pro¬ 
tection might be employed. New tenders were therefore asked, but 
from only three firms. The reason given for asking bids in this 
manner was that “the manufacture of split cables is at the present 
time more special than ordinary 3-core cables, and as far as we know 
has not been made by more than a few of the firms who quoted to 
the original specifications for 3-core cable. It having been decided 
to recommend the council to use split-conductor cables, the three 
following firms were asked to submit tenders for the supply of such 
cable, viz., Messrs. Siemens Bros., Henley’s, and the British Insulated 
Wire & Helsby Cables Co. (Ltd.).” The following quotations were re¬ 
ceived and the contract was let to the British Insulated Wire & 
Helsby Cables Co.: Siemens Bros., $199,808; British Insulated W T ire 
& Helsby Cables (Ltd.), $211,645; Henley’s (Ltd.), $213,640. 

For 500-volt work the street-car companies have used some 
bitumen cable but have had considerable trouble through con¬ 
ductor decentralization; some cable was in service only a few years 
before it failed generally. New cable with harder bitumen and dou¬ 
ble braid was laid and has operated with no trouble apparently 
since it was installed, four years ago. 

BARE AND WEATHERPROOF WIRE-POLES AND TOWERS. 

While a great amount of bare wire is used, the tendency seems to 
be toward the use of weatherproof rather than uncovered wire for 
distribution lines, though in some instances even rubber-covered 
conductors have been used for such work. 

The use of bare copper wire for power work is on the larger foreign 
systems and on trolley systems mainly. In the former case it is 
employed for the extra-voltage feeder lines, while the latter use it 
for trolley work and possibly to a small extent for feeders, though no 
bare feeder wire was noted. At present practically all the bare 
copper wire comes from Japan, and in view of the production of the 
mines of that country as compared with their home use it is hardly 
likely that American manufacturers can compete with Japan for this 
business in normal times. 

In the past apparently most of the weatherproof wire has come 
from England or Germany, but since the w T ar started Japan has 
obtained considerable business. No triple-braid weatherproof wire 
so far seen comes up to good American wire in quality, and prices 
are not materially lower than those that could be made by manu¬ 
facturers in the United States. Samples of Japanese triple-braid 
weatherproof wire were poor, the braiding having little pliability and 
showing a tendency to crack easily. The compound was likewise 
inferior to standard American wire. A sample of this wire accom¬ 
panies the writer’s report on the electrical industry in Japan. (See 
Appendix B.) 


54 


ELECTRICAL GOODS. 


Though Japan, with its home copper supply, can probably give 
serious competition, American makers should be able to do a little 
business in this line, if they go after it in earnest. 

China has three regular sources of supply for wooden poles—its 
own limited and rapidly diminishing forests, Borneo, and Japan. 
Some line supports come from the United States. Chinese poles are 
very slim and are obtainable in some localities as long as 50 feet, 
though with tops as small as 4 or 5 inches in some cases. Transpor¬ 
tation is the factor that determines prices at points distant from the 
place of cutting; this is a serious problem in China and results in 
widely differing prices. At Amoy the pole supply comes from a 
point about 30 miles from the city, and the poles are sent down the 
river easily. The 40-foot length is the more common here, and 
with a 6-inch top these cost about $6 Mex. delivered at Amoy. For 
5-inch, 30-foot poles the price delivered at the city runs from $3 to 
$4 Mex., while a 60-foot spliced pole runs up to about $24 Mex. 
These poles have a small butt diameter—only about 9 inches for a 
40-foot pole—and therefore do not have much margin for decay. 
Their life is not long, nor are they adapted to carrying heavy loads. 
Moreover, the native pole output is small. Therefore, at points 
where direct transportation is possible and in some other cases, 
wooden poles are brought from Borneo to South China and from 
Japan to North and Central China. 

In Shanghai the chief engineer of the telephone company has 
developed a patented type of socket pole setting that works out very 
well. A structural-steel socket of square cross section, made up of 
four 2 by 2 by I inch angles with diagonal lacing of flats, and similar 
to a section of a steel pole, is set in a concrete base. The average 
length of steel in the concrete is 6£ feet, with feet extending above 
the base. The base itself, which has a cored center, extends 18 inches 
above the ground, so that the net set is about 5 feet. The socket is 
10 by 10 inches in section and into this is set a sawed Douglas-fir 

E ole 35 feet in length and tapered from 8 by 8 inches at the top to 10 
y 10 inches at the butt. This construction seems to carry the lines 
without trouble, notwithstanding the heavy winds that sweep up the 
coast periodically. The fir poles last about five years when set in 
the earth; set in this t}^pe of base, the life is at least seven years. 
Figure 3 shows a pole setting of this kind. 

Tubular steel poles are used by the trolley companies (which oper¬ 
ate at present in only three cities of China), and to a small extent by 
one or two telephone exchanges and lighting systems. The market 
is therefore small and has apparently been supplied by Great Britain. 
A few latticed structural poles were seen in Hongkong and Peking 
especially, but there is hardly any regular market for such material. 
There being no transmission systems, steel towers are not seen, except 
that here and there a distribution system may have a special struc¬ 
ture made up locally for some unusual condition. 

CROSS ARMS, INSULATORS, AND PINS-LINE HARDWARE. 

Angle-iron cross arms are used to a considerable extent in China by 
the larger companies and somewhat also by the smaller native-ownecl 
systems. The former companies tend toward 2\ by 2\ inch or 
3 by 3 inch angle, with I-inch metal, and 4 to 4J foot length, whereas 
the latter use lighter arms, such as 2 by 2 by -re inch. Pin spacing is 


CHINA. 


55 


a trifle closer than in American practice. The lighting companies 
have native blacksmiths make up these angle-iron arms about as 
needed, and it is thought there will be no opportunity to sell them 
already made up. 

Wooden cross arms are of native timber in many cases, sawed out 
by hand in Chinese “sawmills.” Owing to the present high cost of 
steel, wooden arms are being used more. The Government telegraph 
system is employing wooden arms to an increasing extent, as against 
its former practice of carrying the wires on bracket insulators up and 
down the side of the pole. 

Insulators are of porcelain, generally white in color, and are usually 
bought complete with pin and washer. In the past Germany, Eng¬ 
land, and the United States have sold in this market. Now, however, 
Japan is doing most of the business, though the stations are afraid of 
Japanese insulators for the higher primary voltages, one native 
station, for instance, purchasing its low-tension insulators, or “cups,” 
as they are often termed, from Japan, but sending to the United 
States for those used on its 5,000-volt primary lines. 

The type of insulator used for average low-tension and telephone 
work is about 3 inches high and about 2f inches in diameter with 
about a f-inch pinhole. An insulator, pin, and washer of this type 
cost from 36 to 45 cents Mex. at Shanghai warehouses of Japanese 
agents during the summer of 1917. A similar type of Japanese insu¬ 
lator for telephone work was quoted early in 1917 at about 4 cents 
United States currency delivered at Hongkong, and the pin for the 
same at about 14 cents United States currency, delivered. 

For primary work a larger insulator is generally used—about 3 
inches in diameter and 4 inches in height—with a f-inch or 1-inch 
pinhole. This general size of insulator is quoted at about 4.25 cents 
United States currency at Japanese ports, and the pin for it at about 
9 to 10 cents each, f. o. b. ports in Japan. There is considerable 
variation in prices charged Chinese buyers; it seems that the agents 
there often charge the buyer what they think they can get. 

On a price basis the American manufacturers can not compete with 
Japan in normal times for this small-insulator business, but they can 
do a small amount of trade in the larger insulators on a quality basis, 
as the Japanese articles are often poor and irregular in shape. A 
new factor in the insulator business is looming up, however. Chinese 
potters are being taught to make insulators and there is no reason 
why they should not soon supply their own needs in the low-tension 
porcelain line. No data were available as to prices and no insulators 
were seen, but authoritative information was given that the Chinese 
are themselves beginning to make insulators. 

American steel pins would do well in this market if the makers would 
standardize for the pinhole diameters used in the market. The porce¬ 
lain insulators used here have smaller pinholes than in the United 
States. Japan appears to be the chief competitor to be met, though 
British houses will also be factors. If the Chinese potters are able to get 
the making of insulators on a manufacturing basis, the sale of American 
pins with native insulators should make a good combination. 

Great Britain and Germany have apparently furnished most of the 
line hardware in the past, with Japan and America supplying a part. 
At present Japan seems to sell the bulk of the line hardware used in 
China. The market, however, is small and the tendency is to buy 


56 


ELECTRICAL GOODS. 


the raw stock and have local native workmen make up what is needed 
in such simple fittings as shackle insulator yokes. 

Brackets with a lag-screw fastening, of the type termed “swan 
necks/' probably make the largest item of hardware outside of bolts, 
and there is no reason why American manufacturers can not get this 
business if they go after it, though Japan will be a close competitor. 

TRANSFORMERS. 

Since there are no transmission systems in China, there are no high- 
voltage transformers to speak of, those operating at 22,000 volts 
primary at Shanghai being the only ones noted where the pressure was 
above 5,000 to 6,600 volts. The transformer business in China may 
therefore be classed as entirely in distribution types. 

Prior to the war the chief competitors in the field were one of the 
large American companies, the Allgemeine Elektricitats Gesellschaft of 
Berlin, the Berry (British), and the British Westinghouse. Japanese 
transformers were beginning to come in just prior to the war, it was said. 
American transformers were a trifle higher priced than others and the 
German company probably gave the most serious competition, as its 
prices were as low as two-thirds of the American. It may be noted 
that the German transformers were lighter than the American. The 
British transformers were lower in price and in weight also. The 
American manufacturer most strongly in the field obtained a fair 
amount of business on quality; and on the largest system in China, 
that of the Shanghai Municipal Council, this American company and 
the British Electric Transformer Co. obtained most of the business. 

In large-capacity transformers where the voltage is higher than the 
usual distribution pressure, American transformers are able to com¬ 
pete in price, as well as to show equally good operating characteristics. 
The following are bids submitted on 22,000-volt oil-filled transformers 
for Shanghai in 1915. It may be noted that the British manufacturers 
were operating under war conditions when these tenders were made: 
American manufacturer (A), $59,276; American manufacturer (B), 
$91,850; British Electric Transformer Co., $107,214; Oerlikon Co., 
$112,173 (not including oil); Brush Electrical Engineering Co., 
$128,008; Ferranti (Ltd.), $61,055 (quotation is for a portion only of 
the transformers). 

Outside of Shanghai and Hongkong the competition American 
manufacturers meet most at the present time comes from Japan. 
Makers of transformers in Japan are working the native central-station 
field very hard and are selling their product at low prices. It may be 
said, however, that the quality is lower than the prices, and there have 
been many cases of breakdown between the primary and secondary 
coils, resulting in fatal accidents to consumers. 

An American-educated Chinese engineer in charge of a central 
station stated that one of the best makes of Japanese distribution 
transformers would run about 12 per cent below those of a well-known 
American manufacturer in price and about 15 to 20 per cent lower in 
weight. Prices quoted for this station in May, 1917, were as follows, 
in United States currency, delivered at a Chinese port not far from 
Shanghai: 5 kilovolt amperes, $48; 7.5 kilovolt amperes, $63; 10 
kilovolt amperes, $77; 15 kilovolt amperes, $100. 

While transformers made by a few of the larger companies are gen¬ 
erally complete, it often happens that Japanese transformers are 


CHINA. 


57 


wound without primary taps, though in other ways they follow the 
usual manufacturing practice. British transformers undersell the 
American makes in the market by 5 to 10 per cent in normal times, but 
did not have the operating characteristics of the American, it was said. 

American transformers used in China have a very good reputation, 
only one complaint being made. This was in regard to small-size 
three-phase units, of which the general criticism was made that they 
were not so satisfactory as the best British transformers of the same 
type. While a good deal of cheap competition from Japan will 
have to be met, American transformers should take a share of the 
business on a quality basis. It is expected that German transformers 
will be strongly pushed in China when the war ends, but troubles 
with the Allgemeine Elektricitats Gesellschaft equipment in Shanghai, 
which have been given wide publicity, will affect German sales for 
some time. The engineers of the Shanghai plant say that the Ger¬ 
man transformers they have in service are inferior to the American or 
British equipment that they use. Figure 4 illustrates a type of port¬ 
able substation developed by a Chinese system. 

STREET-LIGHTING FIXTURES. 

Outside of foreign settlements and one or two cities served by 
native central stations under foreign supervision, street lighting in 
China is not on a very strong basis. This would be expected in view 
of the fact that municipal government is not well organized and the 
collection of revenue is not conducted in a manner that will tend to 
strengthen local finances. In Mukden, where the Chinese city is 
probably the best-lighted native city in China, an unusual method of 
collecting street-lighting dues was noted. It may be remarked that 
Mukden is within the Japanese “sphere of interest” in Manchuria, 
and that the city is made up of the Chinese city, an international district, 
and a Japanese city. The Japanese operate a central station, pre¬ 
sumably for their own city, but their lines were being extended into 
portions of the Chinese city. The engineer in charge of the Chinese 
lighting system is an American and the equipment is American, while 
the other system is owned and operated by the South Manchuria 
Railway. 

In Mukden the collection of street-lighting charges due the native 
plant, which is owned and operated by the provincial government, 
is in the hands of the police, who go to the people within a certain 
distance of each light and collect from each a portion of the total 
charge for that light. This scheme has the merit of directly taxing 
the people most benefited by a light, but it offers an unsurpassed 
opportunity to obtain “squeeze,” and the police are said to collect 
an excess over the amount expected and received by the lighting 
plant. . 

Incandescent lamps are rapidly replacing the few arc-lamp instal¬ 
lations in service in China, and in the future it is hardly likely that 
new arc systems will be erected. The simplicity of incandescent 
lighting is of special value in China, where the labor is untrained. 
The smaller units possible with incandescent lamps also make this 
type better suited to local conditions, where the light in the narrow 
streets need not be more than 16 to 32 candlepower. Since the 
streets in native cities are generally crooked as well as narrow, the 
lights need not carry so far as where streets are wide and extend in a 


58 


ELECTRICAL GOODS. 


straight line for long distances. Of course, in almost every town 
that lias electric lights there is at least one street that is fairly broad 
and straight, but this is not true of the average thoroughfare of a native 
city. In Canton there are streets as narrow as 8 feet, with buildings 
erected flush with the street line, and in Swatow the streets are often 
so narrow that the lighting company rests poles about 4 or 5 inches 
in diameter on the tops of the houses at each side of the street, span¬ 
ning it in this way and carrying lines on these poles down the middle 
of the street just as in the United States lines are sometimes carried 
down alleys in business districts. It is evident that local conditions 
make incandescent street lighting preferable to any other kind for 
China. 

In the past street-lighting fittings have come from England, Ger¬ 
many, and the United States. In the future Japan will be a competi¬ 
tor in the field. There is also a probability that Chinese dealers will 
buy sockets and have the fittings made up locally to a small extent, 
as they are beginning to turn out enameled reflectors for indirect- 
lighting fixtures.. For multiple lighting, American fixtures will 
probably have a hard time meeting foreign competition, but American 
series-lighting street hoods should take most of the business; the 
only serious competition, it is likely, will come from Japan. 


MOTORS AND CONTROLLING APPARATUS. 

While manufacturing in China is a negligible part of its industrial 
life and while man power is often employed where machinery would 
be used in other parts of the world, the country is so large and the 
population so great that the gradual electrical development is bringing 
an immense market for motors. The business will not be in large 
units as a rule, but rather the reverse, since a great deal of the demand 
will be for low-horsepower motors for work that has hitherto been 
done by hand, or by horses or mules, such as small rice or bean-oil 
mills and machine shops. The development of railways in China 
will bring with it a large market for motors, since electric drive will 
be employed in all new railway machine and repair shops, and mining 
on a larger scale will also create a broad field for the sale of electrical 
power apparatus of all kinds. In addition there will be more cotton 
mills, silk filatures, cement mills, cold-storage plants, etc., which will 
mean increased demand for electric motors. From these develop¬ 
ments will come the market for larger-type motors, but the volume 
of business for the next few years should be in the smaller capacities, 
motors of 3 to 25 horsepower. 

A few of the leading manufacturing industries are listed below, as 
taken from the China Year Book for 1916, with the number of plants 
operating in each line: 


Albumen factories. 11 

Arsenals. 7 

Canning factories. 3 

Cement and brick works. 16 

Chemical works. 2 

Cotton spinning and weaving mills.. 56 

Docks, shipyards, and engineering 

works.. 23 

Flour mills. 41 

Ice and cold storage. 9 

Tanneries. 11 


Match factories. 21 

Bean-oil mills. 35 

Paper mills. 11 

Rice hulling and cleaning mills. 12 

Sawmills. 20 

Large silk filatures. 17 

Smelting works. 10 

Soap and candle factories. 26 

Sugar refineries. 8 

Brick-tea plants. 7 






















CHINA. 


59 


The foregoing list includes industries in northern Manchuria, which 
is in the Russian “sphere of control ’’ and which may be regarded more 
as Vladivostok territory than as a market that can be sold through 
Shanghai, though considerable business is done through the latter 
port. The list includes, also, a few plants where little power is used. 

In the past England, Germany, and the United States, with Japan 
a growing factor, have supplied the motors used in China. Germany, 
through close financial connections with many native plants, obtained 
much business on the basis of fairly cheap goods and long terms. 
England has sold goods often because the operation of systems was 
in British hands. Japan is getting equipment trade because of loans 
to Chinese companies. The nationality factor in the purchase of 
electrical goods in China is one that can not be overcome, but the 
Chinese appear to be trying more and more to maintain independence 
in their purchases abroad. 

In direct-current lines, American motors are generally high, the 
British and Germans competing with each other closely in normal 
times. In alternating-current motors the American manufacturers 
compete well, quality considered, and in single-phase lines they 
show not only far better operating characteristics but lower prices 
as well. In Shanghai, prior to the war, the Allgemeine Elektricitats 
Gesellschaft and the Siemens motors, both German, were quoted 
at the lowest prices, the British were next, and the American were 
highest. Japanese makers were coming into the market a little 
before the war and now are pushing their product hard. At present 
their prices are high on account of the scarcity of raw materials 
brought about by war embargoes, and in fact the best make of 
Japanese motor in the market was higher in price than American 
motors in Shanghai at one time in the summer of 1917. In normal 
times, however, Japanese motors will be strong competitors in the 
China market, on the basis of low price. 

The Shanghai Municipal Council power system keeps careful 
records of all motor installation on its lines and these show the 
makes of motors used in that city, not including the native city or 
the French concession, which have only a small amount of power load. 
In July, 1917, there was a total of 1,412 power motors connected to 
the lines of the municipality, of which 100, aggregating 851 horse¬ 
power, were direct-current motors for lift and similar work. There 
were 1,312 alternating-current motors totaling 21,103 horsepower, of 
which 921 were three-phase and 391 single-phase, the former amount¬ 
ing to 18,819 horsepower and the latter to 2,284 horsepower. Of these 
motors, 382 three-phase, totaling 8,596 horsepower, and 220 single¬ 
phase, totaling 1,627 horsepower, are owned by the municipality and 
are rented to consumers at rates noted earlier in this report. The 
purchases of the motors on this system have been made to a con¬ 
siderable extent by the plant engineers, who are British, and this has 
naturally tended toward the use of English motors wherever possible. 
The makes of motors in service at Shanghai, in order of horsepower 
connected, are as follows: 

Three-phase motors. 


1. British Thompson-Houston. 

2. British Westinghouse. 

3. American company (B). 

4. Siemens-Schuckert. 


5. Electric Construction Co. of England. 

6. Allgemeine Elektricitats Gesellschaft. 

7. Shibaura Engineering Works of Tokyo. 



60 


ELECTRICAL GOODS. 


1. Fuller. 

2. Whitting-Eborall. 

3. British Westinghouse. 


Single-phase motors. 

4. Brown-Boveri. 

5. Bergmann. 

6. Rhodes. 


In Shanghai American single-phase motors have not been strongly 
represented in the past apparently, but if properly pushed in the 
future, there are several maxes that can do considerable business there. 

American single-phase motors are the best in the market, and the 
only strong competition noted comes' from England. German and 
Swiss motors of this class have been sold to a small extent, but no 
Japanese motors were seen. The British competition can readily be 
met when the American motors are locally represented, and well- 
known American designs are being sold to British central stations in 
China, owing to their markedly superior operation and to their 
better price. This is one of the few instances where higher-quality 
American apparatus sells at a lower price than its inferior foreign 
competitor. 

The British Fuller and Rhodes motors are the ones that appear to 
be most largely used in China, but engineers admitted that their 
starting characteristics are much inferior to those of an American 
single-phase motor that has been pushed in the market of late. The 
centrifugal switch on the Rhodes gives a great deal of trouble and as 
the brushes are always in contact, they wear down rapidly. 

While American manufacturers will not be likely to do much 
business in direct-current motors, of which there is not a great amount 
anyhow, they should sell a considerable number of alternating- 
current motors in spite of a somewhat higher price. Low prices 
always attract business anywhere but do not hold it if the quality is 
too consistent with the price. An engineer connected with one of the 
largest electrical undertakings in China said the Chinese would buy 
something cheap and poor possibly a couple of times, but then they 
stopped, and when they did stop buying it was hard thereafter to sell 
them anything of the particular brand or “chop” that had given 
them poor service. 

Beyond the fact that direct-current starting boxes should prefer¬ 
ably be ironclad and that insulation used in control and starting 
apparatus must be able to withstand the excessive humidity that is 
general in China, the standard apparatus furnished with American 
motors is satisfactory. There are no rules beyond those established 
by the more important of the systems operating in foreign conces¬ 
sions. The native central stations as a rule do not adopt any 
regulations beyond trying to insure for themselves the sale of sup¬ 
plies and equipment to be used on their lines. The sound engineering 
rule that control apparatus should be simple and rugged holds 
especially good for China. 

The market for electric elevators is small, though growing, and 
is confined to a few of the largest cities. The Chinese are good 
builders and like to have elevators in buildings where there is any 
need for them. However, there are not many office buildings or 
stores where the height is such that they are needed. About the 
tallest building seen was six stories, and there are few over two or 
three. Elevator operators are paid small wages and work long hours, 
so that the labor factor is not so important as it is in other countries. 



CHINA. 61 

The demand, too, is always for manual control, and no automatic 
installations were seen. 

American equipment has been used mainly, with German, British, 
and Swedish competing, but not very strongly. There are quite a 
number of British architects in Hongkong and Shanghai who favor 
British equipment; however, American architects maintain the 
same attitude toward American equipment. The omnipresent 
“ squeeze ’* is said to be somewhat of a factor in the sale of elevator 
equipment, and it was stated that German elevators were sometimes 
placed through this means. 

British ana German equipment runs from 20 to 30 per cent lower 
in price than the American equipment in the field, but there is more 
than that difference in the apparatus. In one instance before the 
war began a Chinese department store bought Allgemeine Elektrici- 
tats Gesellschaft elevators for a six-story building, the price being 
about 20 per cent lower than that of the American competitor. 
When the job was installed it was found that the speed of the ele¬ 
vators was far below that promised and in several other ways the 
installation was unsatisfactory. The purchaser shortly afterwards 
told the representative of the American company that he would 
never buy any more equipment of the German make. 

Smith, Major & Stevens is the strongest British competitor and 
has obtained some little business, but its equipment is considerably 
lighter than American. Its prices, however, are also considerably 
lower than those of United States elevators. As a basis of com¬ 
parison that is somewhat typical of China, the representative for 
an American elevator claimed that it took only 4 coolies to carry 
the machinery for a British elevator job, whereas it took 12 to carry 
the machinery for his job of about the same capacity. It may be 
suggested, however, that the 1 ‘rating” of coolies differs, and that 
they are adept at “ soldiering’■ when an opportunity presents itself. 
This same representative stated also that some British firms do not 
maintain American elevators with the same care that they do British. 

ELECTRIC-RAILWAY EQUIPMENT. 

Only three cities in China have electric street railways at present— 
Shanghai, Tientsin, and Hongkong, the last being not strictly China, 
of course. Canton is considering the installation of a street-railway 
system and this will probably be built in the near future, when 
conditions become more nearly normal. Mukden, in Manchuria, 
has a horse-car line. This system was promoted by some Japanese 
who wanted to find a market for some old cars used formerly in 
Tokyo, where the system had been electrified. It was said that they 
induced Chinese capital to take most of the stock, not expecting the 
system to make much of a success and being mostly interested in 
selling the old cars and the rails at a good price. The line, however, 
proved to be a money maker, so that the Japanese soon bought 
control. 

All the tramways operating in China seem to be making money; 
the Chinese ride freely and foreigners use the cars also to some extent, 
there being a first and third class service on street cars there. The 
Shanghai Electric Construction Co., which is the most important of 
the three systems operating in Shanghai, had in 1916 a total of 


62 


ELECTRICAL GOODS. 


25.825 miles of single track, operating 90 motor cars, 70 trailers, and 
7 trackless trolleys. During that year 69,089,432 passengers were 
carried, an average of 18.16 per car-mile, and the face value of the 
gross receipts was $1,537,577 Mex. The loss by depreciation of 
subsidiary coinage was $387,510, however, so that the actual gross 
or effective receipts totaled $1,150,067 Mex. The gross receipts 
were therefore about 19.4 cents per car-mile in United States money, 
on the basis of $1 in United States currency equaling $2 Mex., and 
the effective receipts were 14.5 cents United States currency, per 
car-mile. In 1916, after transferring about $49,000 gold to depre¬ 
ciation reserve, this company paid 10 per cent dividend on about 
$1,600,000 capital stock. In Snanghai, in addition to this system, 
there is a French company operating a tramway system in the 
French concession in connection with the lighting system, and a 
native system operates in the Chinese city. The trackless trolley 
in Shanghai operates over a concrete-paved street and gives satis¬ 
factory service. One 20-horsepower Dick-Kerr motor is used on 
these cars. 

In Hongkong there is only the one company, the Hongkong Tram¬ 
ways (Ltd.), not including a cableway up the Peak, which is operated 
by steam. At Tientsin one company, the Tientsin Tramway & 
Lighting Co., operates a system; this is a French-Belgian project. 

The control of the tramway situation, as far as it has been devel¬ 
oped, has been largely in the hands of the British, and naturally many 
of the purchases have been made in England, the Bruce-reebles, 
British Westinghouse, and Brush companies securing much of the 
business. Some of the trade, however, has come to the United 
States. American manufacturers are now aiding in the development 
of new systems in cooperation with Chinese capital and will be a 
strong factor in the future, there being no reason why they should 
not successfully compete with British manufacturers in this class of 
apparatus. One of the large American companies furnished the car 
equipment for the native street-railway system in Shanghai. Car 
trucks generally come from the United States, but bodies are made 
locally. 

The British Insulated Wire & Helsby Cables (Ltd.) has supplied 
most of the overhead material in the past, as would be expected with 
British control of the systems. American materials are being more 
actively pushed now and with a development of native systems will 
be able to take a fair share of the business. Trolley cars, trolley 
wheels, and similar small pieces are often made locally. Welding of 
fishplates electrically is being used to some extent in lieu of bands. 

METERS AND TESTING INSTRUMENTS. 

Outside of the systems operated by foreigners there will not be 
any great immediate call for instruments such as voltmeters, amme¬ 
ters, and test wattmeters, on the part of central stations in China. 
Switchboard instruments go with the board, and the board usually 
goes with the generating equipment. In the case of the average 
native system the purchasing company wants an electric-light plant 
and wants to buy it running, with the lights turned on, not differing 

f reatly therein from some small municipalities in the United States, 
t is obvious that switchboard instruments will rarely be imported 


CHINA. 


63 


alone under existing conditions, except by foreign plants. From 
these there should be a small market for ground detectors, synchro¬ 
scopes, and various types of curve-drawing instruments, as well as 
for the moderate-priced types of switchboard instruments for use at 
distribution centers and small substations. A few of the large 
native-owned systems will perhaps add such instruments to their 
equipment gradually as their operating conditions improve. 

In this class of goods American manufacturers will have much 
competition, and American prices are high, so that the instruments 
will n ave to be sold on quality. In round-pattern switchboard-type 
ammeters and voltmeters Japanese makers are putting out some 
very cheap instruments along the lines of the cheap European types 
that have been much used on switchboards for markets like China. 
These are sold for $3.50 or $4.50 (United States currency) and are 
made up in imitation of the Siemens-Schuckert line. 

China presents only a limited market for portable instruments 
but in this line American manufacturers may do a little better, since 
quality is more of a factor in this type of instruments than in panel 
meters. American prices are higher than those of the British or 
German makers who are active in the field. No Japanese competi¬ 
tion has yet been noted in this class of goods. 

One field for portable instruments, and switchboard types as well, 
that American manufacturers can well cultivate is the market afforded 
by the development of the technical school in China. By furnishing 
instruments to these schools at a small margin of profit at the start 
not only is there an opportunity to secure such business in the future 
at better prices, when the schools become better able to purchase 
equipment, but the student will become accustomed to good instru¬ 
ments and will not be satisfied to use inferior meters when he com¬ 
pletes his course and takes a position with a power company. For¬ 
eign manufacturers appreciate the value of having their product in 
native schools, even as a gift, and American manufacturers should 
make greater efforts to place goods where they will aid in educating 
young engineers to American standards. 

A large percentage of the consumers of Chinese electric-lighting 
systems are on a flat-rate basis and even current-limiting devices are 
not used to any extent. The foreign-operated plants have a good 
number of meters in service and do use current limiters somewhat, 
though they do not install the latter to the extent that might be 
expected in view of the European practice with small consumers. 
Shanghai has a meter or a current limiter (the latter amounting to 
about 5 per cent of the total in 1916) on practically everything, 
though the plant does not supply the native city of Shanghai direct 
but sells power in bulk to a Chinese company that distributes in the 
district outside of the foreign-district limits, where a foreign-owned 
company can not give service. The municipal plant, therefore, does 
not have an average percentage of the very small consumers that 
are characteristic of Cnina. Mukden, which has a provincial-owned 
plant under the supervision of an American and one of the best 
operated native-owned plants in China, has 730 meter and 500 flat- 
rate consumers. Macao has about 65 per cent of its consumers 
metered; this plant is foreign owned and operated. The small- 
capacity native stations probably have not over 40 per cent of their 
consumers metered. These stations are often started out well when 


64 


ELECTRICAL GOODS. 


a complete installation is made by some foreign house, but as con¬ 
sumers are added later a larger percentage of business is taken on 
flat rate. 

The Chinese are thoroughly aware of the shortcomings of selling 
electricity on a flat rate and will use meters as much as possible, 
though consumers often have so little connected load that the installa¬ 
tion of a meter is not justified. Current interrupters of German make 
were seen but have not proved popular; they are said to cause too 
much trouble. Conditions in China are more favorable to flat rates 
than in other countries for these reasons: The average consumer in 
that country has not as much knowledge of electricity as the average 
consumer in other lands, and is not so likely to wire up additional 
sockets, though he will probably use larger lamps than he is entitled 
to; again, the native electric-lighting companies in China make every 
effort to control the sale of all electrical materials in their city and to 
control the wiring done, and it is difficult for a consumer to buy 
wiring materials except through the lighting company. The com¬ 
pany thus keeps in close touch with the installation of materials sold, 
especially if the purchasers are flat-rate consumers or residents who 
are not connected at the time The local conditions in the case of a 
native-operated system are therefore very favorable to the exercise 
of control over flat-rate business, whereas a foreign-owned plant is 
located necessarily in a foreign settlement, where the natives are 
wiser and where materials are more readily obtainable. In the latter 
case, however, as was noted earlier, there is not the same class of 
very small consumers that exists in purely native towns. 

The meter business of China is growing rapidly, as new plants are 
being installed. The United States has not furnished a great amount 
of the requirements of China in the past, but better representation 
and closer relations with the central stations make the outlook in 
this line very promising. Export statistics of the United States prior 
to 1915 did not classify meters and instruments by themselves, but 
for the years to date the sales of this class of goods to Chinese 
territory and Hongkong have been as follows: 1915, $445; 1916, 
$7,864; 1917, $18,361; 1918, $40,613. These achievements are not 
so impressive as the possibilities. 

The market for meters in China is largely for alternating-current 
types. There is a small volume of direct-current business, which 
comes either from fair-sized English-controlled plants or from small 
native stations. In the former case British meters would be favored 
in any event, and in the latter case the stations are few in number 
and small, and besides have a considerable number of their con¬ 
sumers on flat rate. Moreover, American direct-current meters are 
considerably more expensive than are British and European instru¬ 
ments of this type and can not compete with them abroad. 

The American alternating-current meter can compete abroad with 
foreign makes. Its slightly higher price is, in most cases, com- 

E ensated for by the difference in quality. Germany and England 
ave sold the majority of the meters used in China at present. Prior 
to the war only one American manufacturer seemed to be at all active 
in this market, but since then two or three others have arranged for 
representation and have sold a fair number of meters. One com¬ 
pany, however, entered into arrangements with a Japanese house in 
Tokyo to act as its agent in both Japan and China, and in these cir- 


CHINA. 65 

cumstances will not be likely to build up a permanent business, 
though it may sell a few orders during the war. 

The British and European meters in the market in normal times 
are those made by Ferranti, Siemens-Schuckert, British Thompson- 
Houston, British Westinghouse, Chamberlain & Hookham, Allge- 
meine Elektricitats Gesellschaft, and British General Electric Co., with 
a few others taking a little business here and there. Generally speak¬ 
ing, it would appear that the British meters have been used more in 
the large treaty-port cities, where foreign companies operate, whereas 
German meters have sold more to native central-station systems. A 
few American meters were seen on the lines of both classes of plants. 

Foreign meters do not have the quality of American meters. Not 
only are they less accurate over a period of time but they seem to 
deteriorate more quickly under the climatic conditions in China. 
Since the war began foreign meters have cheapened their product to 
some extent also, owing probably to the difficulty of obtaining mate¬ 
rials. The Ferranti meter, for instance, is using iron screws in some 
cases where brass ones were formerly employed. This meter has a 
strong following in China, but British engineers admitted that Ameri¬ 
can meters used are a little better. 

Prior to the war the Ferranti quoted at about $4.87 United States 
currency f. o. b. London for a 5-ampere, 220-volt, single-phasemeter; 
in the spring of 1917 the quotation was about $6.33. In May, 1917, 
this meter and a well-known American meter were being landed in 
South China at about the same delivered cost, roughly $9.60 each. 
Another type of American meter was delivered in China in 1916-17 
at a price about 6 per cent below that of Siemens-Schuckert meters 
sold From stock after the war began. Prior to the war the German 
meters were often sold about 5 per cent below the British prices in 
China, the German houses evidently just cutting under the latter. 

As a general thing, in normal times the British and German alter¬ 
nating-current meters were quoted at somewhere ne&r $6 United 
States currency in Shanghai and were sold at that price f. o. b. 
Shanghai, to outport central stations. American meters ran 10 to 
15 per cent higher in price in most cases. 

Though they will probably remain slightly higher in price than 
foreign meters, American designs should be able to build up a fair 
trade in China. If attempts are made to market a special design for 
over-sea trade, to compete with the cheaper European meters, it is 
believed this will be successful. It would probably stimulate sales 
in the standard meters also, which should by no means be withdrawn. 
Any such competitive meters should be distinctive, so that they could 
not injure the prestige of the standard meters. 

lamps. 

There seems to be no likelihood that arc lamps will be used much 
in China. The incandescent lamp offers so many advantages over 
the arc lamp for street lighting in that country that it would in most 
cases be poor engineering to install an arc system. Three or four of 
the largest cities have some arc circuits in service and will probably 
use them to some extent in the future, with possibly a few additions 
and replacements, but the Shanghai municipal plant has taken down 

70005°—18-5 



66 


ELECTRICAL GOODS. 


the inclosed and flaming-arc street-lamps there and replaced them 
with gas-filled incandescents. 

A few old arc lamps were seen in stores, but the tendency is toward 
the replacement of such installations with incandescents. In the 
future, therefore, it seems probable that the business in arc lamps will 
be confined to a few flaming-arc units here and there, which business 
will probably go to European houses, because of lower costs. 

Prior to the war the United States did not sell many lamps in 
China. In part this was possibly due to patent and agency agree¬ 
ments and in part to a slightly higher price for such goods from the 
United States. At any rate, the United States has increased its 
lamp business in China considerably in the last few years, as is indicated 
by the following figures showing the exports of incandescent lamps 
from the United States to Chinese territory and Hongkong during the 
years ended June 30, 1913 to 1918: 


Kinds of lamps. 

1913 

1914 

1915 

1916 

1917 

1918 

Carbon-filament lamps. 

$5,390 

1,694 

$480 

O GO 

S'* 

$4,680 

$36 

$894 
38,198 

Metal-filament lamps. 

665 

70,212. 

93,902 



The abnormal increase in business during the fiscal year 1916 was 
due to the effect of the war on European manufacturers, to the lack 
of shipping space, and to the resultant high freight rates, while at the 
same time that the European supply was being greatly reduced by 
the shipping and war conditions, there was a healthy growth in new 
electrical undertakings in China and a marked increase in load on 
existing stations. 

Prior to the war British, German, American, Dutch, and Japanese 
lamps were in the market. The lamps that were strongest were the 
British “Osijam,” the German “Wotan,” and “A. E. G.,” a well- 
known American lamp, the “Phillips” lamp of the Netherlands, and 
to some extent a lamp made by the Tokyo Electric Co. The Osram 
lamp has a very good name among the Chinese, and the American 
lamp stands well also. In normal times there is no great difference in 
life and efficiency between European and American lamps, and the 
product of the Tokyo Electric Co. is fair, though this can not be said 
for many other brands of Japanese lamps. In cost the British and 
German lamps were about the same, with American lamps generally 
a trifle higher and Japanese lamps lower. 

In the spring of 1917, a large importer in China gave the following 
prices as relatively representative current c. i. f. quotations per 100 for 
metal-filament lamps of 5 to 60 watts: Japanese lamps, $21.30 Mex.; 
Osram (British), $35 Mex.; Phillips (Dutch), $37 Mex. 

No brand was given for the Japanese lamps, and these were ad¬ 
mitted to be inferior to any of the other lamps. Japanese lamps were 
being delivered to a buyer in Canton, freight and duty paid, at $0.28 
each in Canton money for sizes running from 5 to 50 candlepower, and 
were being retailed at about 10 per cent above that price. At that 
time Canton money was about 15 per cent below Hongkong money in 
value, and the foregoing price would be equivalent to about $0,143 in 
United States currency. At Foochow a Japanese electrical dealer 
was retailing lamps up to 25 watts at $0.35 Mex, 















CHINA. 


67 


In spite of the fact that American exports of lamps to China are 
large at present, the future does not seem promising. An American 
electrical manufacturing company some years ago established in 
Japan a lamp factory in cooperation with Japanese capital. This 
subsidiary company is the Tokyo Electric Co., which has since grown 
considerably and has a modern manufacturing plant. In addition 
to this particular plant, at least four others in Japan under various 
names are said to be controlled to some extent. The Tokyo Elec¬ 
tric Co. has been selling in China through the agency of what is now 
an American house. This house was supposed to have the exclu¬ 
sive agency for China, according to reports, but lamps made in works 
of this subsidiary company were sold to China through other sources 
practically in competition with the bona fide agents. Furthermore, 
it was claimed that lamps sent the agents were of poor quality, 
whereas the lamps marketed through other means were the pick of 
the production. 

The American company in connection with the China agents 
arranged to erect a lamp factory at Shanghai and there make lamps 
for the China market, which it began to do in the summer of 1917. 
The Tokyo Electric Co. then erected a branch lamp factory of its 
own at Shanghai, so that now there will be two modern plants making 
lamps for the China trade with cheap labor. Independent American- 
made lamps will find it hard to compete with prices that such plants 
should be able to make, though foreigners claim that the cheap labor 
is not ultimately so cheap as the wages would indicate. 

While the lamps of the Tokyo Electric Co. are fair, foreign engineers 
said that they do not have the life of American or British lamps, 
and there is no question as to the average Japanese lamp. One 
engineer claimed they would not run much over 200 hours, and deal¬ 
ers generally stated that they blacken very quickly. Among samples 
of lamps accompanying this report there is one made by the Shanghai 
branch of the Tokyo Electric Co. 

The hope for any American lamp manufacturer who ventures to 
enter this market lies in superior quality, as it will hardly be possible 
to compete on a price basis. The Chinese dealers appreciate the 
difference in lamps and universally condemn Japanese lamps. How 
they will feel toward lamps made in China by Chinese under American 
supervision is another matter, especially if the Chinese-made lamps 
are not markedly inferior to foreign lamps. 

BATTERIES. 

American exports of batteries to China have been of fair volume, 
the total for the fiscal years since a separate classification has been 
made of this item being (for China and Hongkong) as follows: 1914, 
$5,458; 1915, $4,378; 1916, $14,695; 1917, $20,769; 1918, $34,419. 
The trade in this line does not show an impressive total, but it does 
show a good tendency in a country where a promising field is likely to 
be developed as China grows electrically. 

While wet cells are used to some extent in China, the business is 
not of any great volume. A few Leclanche cells were seen in most 
of the electrical shops, but the call for them appeared to be light. 
The use for such cells is limited. Most of those in the market prior 
to the war were British, but Japanese cells now predominate. The 


68 


ELECTRICAL GOODS. 


cells carried in stock were about 4.5 inches square by 6 inches high. 
At Hongkong before the war this type of cell, British made, cost 
S8.80 Mex. per dozen c. i. f. for the unit; including glass jar, carbon, 
zinc, and porous cup. In the spring of 1917 the same cell cost about 
$10 Mex. per dozen. At the latter date Japanese copies of this cell 
cost $6.45 Mex. c. i. f. per dozen. No American wet cells were seen, 
and with the small demand it is hardly worth while to sell them in 
the face of such competition, though the quality of the carbon and 
the depolarizer in the Japanese cells is poor. 

In the dry-cell line American manufacturers are in a better position 
and there is a good market, the majority of the telephone systems 
being of the magneto type. The climatic conditions are such that 
cells do not dry out as in some countries and the normal life is longer. 
Competition in the dry-cell field is keener than in wet cells. Danish, 
British, American, and German manufacturers were in the field prior 
to the war. The Danish Hellesen cell is regarded as the best cell in 
the market, and the'officials of one of the largest telephone systems 
in China (foreign owned and operated) stated that they had cases 
frequently where the Hellesen cell would last as long as five years 
in a subscriber’s set, with only a single cell installed, 2.5 inches in 
diameter by 6 inches high. A good grade of American cells has been 
used to some extent, but the company claimed that it did not get 
more than a year’s life out of the same size American cell used under 
the same conditions as the Danish. The cost of this American cell 
was about 65 tael cents c. i. f. Shanghai, duty paid, in pre-war times, 
while the Hellesen cell cost about 60 tael cents. Of late the Hellesen 
cell is made up with coppered-iron terminals, which give trouble 
through corrosion. 

British or German cells did not appear to be in stock at dealers 
visited, the cells carried being American and Japanese. The latter 
generally seen are low in price and very inferior to other cells; they 
deteriorate rapidly when kept in stock. One large buyer said Japa¬ 
nese cells would last eight months in stock, while American makes 
would hold up for two years. As a comparison of price one large 
importer had bought some 2 by 2 by 5 inch square cells and some 
2.25 by 5.5 inch round cells made by Shomura & Co., of Kobe, 
Japan, for $5.70 Mex. per dozen c. i. f. Hongkong, while a well-known 
No. 6 American cell had cost $9 Mex. per dozen c. i. f. There are 
some fairly good Japanese cells, but these are a trifle higher priced 
than the good-grade American cells and were not seen in the market 
to any extent. 

Electric torches and flash lights were stocked by almost all dealers 
seen and are apparently taking well. A considerable number of 
Japanese cells is being sold as part of a flash-light unit, and renewals 
are kept in stock, so that the volume of the business appears to be 
Japanese. American renewals were hardly ever seen. Japanese 
manufacturers furnish cheap cases and cheap cells and the users have 
had little opportunity to try a good outfit. An average flat flash¬ 
light unit, 1 by 2.625 by 4 inches, complete with lamp and battery, 
was sold to a large importer in Hongkong at 50 cents Mex. c. i. f. 
that port; a round type about 1.25 inches in diameter by 7.5 inches 
long cost 55 cents Mex. c. i. f., and another round type of about 
the same size with reflector cost 60 cents Mex. Renewals for these 
flash lights cost 16 and 19 cents Mex, c. i. f., but, as has been re- 


CHINA. 


69 


marked, they are poor. Bulbs for flash lights cost about 3.5 cents 
United States currency for the clear and 4 cents each for the half- 
opal type c. i. f. Hongkong. These show very poor uniformity both 
as to voltage and as to size of bulb, and while one may now and then 
give good life, as a rule they burn out quickly. 

China is a cheap market for devices of this kind, and it is not be¬ 
lieved any volume of business in high-grade American goods can be 
developed, though some sales can be made on quality. 

There is little use for storage batteries in China at present. A few 
central stations have had storage-battery installations, where British 
engineering practice was followed strictly, but there will not be any 
great future in this line. There is a promise of considerable business 
in small batteries for automobile ignition and lighting, as the build¬ 
ing of streets and roads makes possible a greater use of motor cars. 
In addition, train-lighting and farm-lighting plants will offer a fair 
market, as well as electric vehicles in one or two cities. 

The few installations of storage batteries for power-station service 
seem to be British, but batteries used in automobile work generally 
appear to be American, though a few Japanese ignition units were 
being displayed by dealers in Shanghai. Japanese manufacturers 
are making these small sets in celluloid cases for motorcycle and 
bicycle lighting as well as for automobile work, and will probably do 
a little business in these lines. In the fall of 1917, a British house in 
Shanghai w as trying to obtain the agency for some American light¬ 
ing set* for motorcycles, etc., as there was an increasing demand for 
such an article. The small Japanese storage batteries were lower in 
price than the American, but what little data could be obtained in¬ 
dicated that they were not very good and deteriorated rapidly. 

For electric train lighting, the Stone, Mather & Platt, Brown- 
Boveri, and Pintsch-Grob systems were in use to the largest extent. 
There is not much market for this apparatus, in view of the small 
railway mileage in China. The old and influential British house of 
Jardine, Mathieson & Co. is agent in China for the Stone system 
and is probably the strongest in the field. With American capital 
coming into China for railway development, there should be more 
opportunity for American apparatus of this class. 

ELECTRIC VEHICLES—FARM-LIGHTING PLANTS. 

The Shanghai municipal plant is carrying on a campaign for the 
use of electric vehicles in that city and is meeting with fair success. 
The municipality itself owns several electric trucks and finds them to 
show lower cost per mile than gasoline trucks. In addition, the 
local agency for an American electric pleasure car is conducting an 
aggressive campaign, and in 1917 there were said to be 21 vehicles 
of this make in Shanghai. In most Chinese cities the streets are so 
narrow that automobiles can not be operated, and the present pos¬ 
sible market for cars of any type is confined mainly to a half-dozen 
cities where foreign influence has brought about street width and 
paving that permit the use of automobiles. Again, few of the cities 
make rates low enough to attract elec trie-vehicle business. Shanghai 
not only makes low rates, as stated under “ Central stations,” but 
arrangements can be made for hiring charging sets, as is done with 
motors. 


70 


ELECTRICAL GOODS. 


Gas cars have not the “talking points” over electric vehicles in 
China that they have in the United States, in that the road condi¬ 
tions place a limit on the amount of travel that can be done outside 
of the confines of the cities. Therefore the question of mileage, ex¬ 
cept as it concerns the efficiency of the electric car itself, is not so 
strong a point for argument as in the. United States. 

There should be an opportunity for American manufacturers to 
do a fair amount of battery business in connection with the sale of 
electric vehicles, though the conditions are against any volume of 
trade at present. 

While there is no chance to sell small generating sets to bona fide 
Chinese farmers, who have little land and little money, there is a 
good opportunity to sell them to wealthy merchants in interior 
towns where there is no electric service. One importer who has 
done a little work in this field stated that he was very optimistic 
over the possibilities. Also, one house has sold 20 small American 
sets for supplying energy for electric signs in some interior towns. 

If intensive methods of selling were adopted, such as taking a set 
out through the country and making actual demonstrations for 
prospective buyers right at their own homes, it is said that a large 
volume of business can be done. An importer who is interested in 
the development of this class of business and who is familiar with 
local conditions is authority for this statement. As the Chinese 
want to see the actual thing they are to buy, in so far as possible, it 
is likely that this method of placing sets would work out very well, 
particularly as a means of opening up the field. 

At present there is only one foreign competitor in the field. The 
British Lister-Bruston lighting set is being pushed quite strongly, 
but it can hardly compete with American sets; it costs considerably 
more than American sets of the same number of lights and is not so 
compact and well planned for conditions in China. A catalogue 
giving data on this plant is forwarded with this report. 

The market in China demands the simplest and most foolproof 
set possible, and engineers with whom the question was discussed 
did not believe automatic starting was warranted in that market, 
on the grounds that the greater convenience of that type was not 
compensated for by complications introduced and that the cheap¬ 
ness of servants in China makes it unnecessary to introduce these 
conveniences. The same argument was made as to the use of a 
storage battery, men who have lived in China for some time seeming 
to consider the maintenance* of the battery as being somewhat of a 
problem, in that good water in China is difficult to get, and it would 
probably be hard to convince the average Chinese “boy” that only 
distilled or clean rain water could be used in a battery. The Chinese 
have a theory, it is said, that no water is bad, though some waters 
are better than others. 

The matter of having a battery a part of a farm-lighting set for 
the Chinese trade is favored by some houses, but in the conditions 
under which such sets will necessarily be installed, it is certainly not 
essential to enter the market with a set so equipped. There is always 
a “house coolie” available to start and stop a set, day or night, as 
the servant problem in China is hardly a problem at all, and the 
hours of service are not clearly defined. 


CHINA. 


71 


TELEPHONE EQUIPMENT. 

It is difficult for a foreigner to obtain a franchise to operate a 
telephone exchange in a Chinese city, though there is nothing to 
prevent such ownership and operation where the service is confined 
solely to an international settlement or concession. Again, while it 
is theoretically possible for a Chinese to obtain a permit from the 
Minister of Communications at Peking to operate an exchange, it is 
difficult to get such a permit, as the policy of the ministry seems to 
be toward Government ownership of all communication facilities. 
Under the conditions that exist, there are four classes of telephone 
exchanges in the country, as regards ownership: (a) Those owned by 
the central Government at Peking; ( b ) those owned by Provincial 
or State governments; (c) those owned by private Chinese com¬ 
panies;, and ( d ) those owned by foreigners. 

The central Government operates a number of telephone exchanges 
and a few stretches of toll line in China proper and South Manchuria, 
an 80-mile line between Peking and Tientsin being one of the most 
important. The largest exchange operated is that at Peking. All 
telephone and telegraph work is in the hands of the Ministry of 
Communications, and the department is not only averse to granting 
permits for the establishment of exchange^ by others than itself but 
is buying up desirable properties as fast as it can finance the pur¬ 
chases. Telephone men in China state that the central Government 
would take over all telephone exchanges and grant no further permits 
for private plants if it were able to obtain the money necessary to 
carry out its policy. 

The various Provincial (State) governments operate a number of 
plants, the largest of which is at Changsha in Hunan Province. 
There are also a number of exchanges operated by private capital. 
One of the important cities with a privately owned Chinese exchange 
is Canton. 

In the fourth class, where the ownership is foreign and the system 
operates within foreign settlements, there are probably a half-dozen 
exchanges, of which the one at Shanghai is by far the most important. 
The others are very small and more on the order of outdoor inter¬ 
communicating systems, which have been installed as a matter of 
convenience rather than as financial undertakings. 

Most of the exchanges are magneto systems and the volume of 
business is in that type of equipment, though there are a few common- 
battery systems. In the future it is expected that for some years 
the greater percentage of the work will be magneto multiple with 
lamp signal supervision. In cases where magneto systems will be 
replaced, engineers, both private and Government, believed that 
regular manual common battery systems would be adopted. They 
did not feel justified in taking up an automatic system in view of 
the extreme humidity in China. There is an opportunity to show 
that the automatic can be operated satisfactorily by arranging to 
install a small exchange and operate it for a short period, turning 
it over to the Government at the end of the period of satisfactory 
operation. The Government engineers did not appear to be antago¬ 
nistic to the system, but they were frankly skeptical as to the possibili¬ 
ties of such a system operating well under their climatic conditions. 


72 


ELECTRICAL GOODS. 


The outside construction of telephone systems in China is mainly 
overhead, with a large percentage of open wiring. Aerial cable is 
being employed to an increasing extent, however. In the matter 
of poles, etc., the situation is the same as was outlined in the discus¬ 
sion of distribution systems for central stations. Poles are cheap 
at points close to source of supply but relatively expensive in remote 
districts where transportation facilities are still primitive. Cross 
arms are used more than in power work, as would be expected, and 
brackets are employed only where a few lines are carried. Porcelain 
insulators are used practically to the exclusion of any others. 

There is practically no toll-line development in China as yet, for 
two or three outstanding reasons. In the first place, the Govern¬ 
ment, which under the existing ownership conditions is alone able 
to carry out a ^general toll-line scheme, has already a quite complete 
telegraph system connecting the cities where toll lines would be most 
desired. If toll lines are built the Ministry of Communications fears 
that the earnings of the telegraph system will drop off very much, 
while in many cases, on the other hand, there will for some time be 
hardly enough toll business to warrant the construction of toll lines. 
The two cities that would probably be the first to be connected and 
appear offhand to warrant immediate construction are Peking and 
Shanghai. While the Government owns the exchange at Peking, 
the system at Shanghai is operated by a mutual company, for¬ 
eign controlled, and arrangements satisfactory to both parties 
have not been possible so far. Naturally the building of a line and 
the installation of a few long-distance stations at the Shanghai end 
would not result in satisfactory service or considerable earnings. 
The Chinese Government owns a little toll line out of Mukden, and 
native merchants also own and operate lines connecting Mukden 
with surrounding towns. In addition, the Japanese Government, in 
the name of the South Manchuria Railway Co., has built up a toll 
system in South Manchuria and has lines connecting Dairen, Mukden, 
Port Arthur, Fushun, Penhsihu, Kaiping, Newchwang, Changchun, 
and other towns in that territory within or near the South Manchuria 
Railway zone. 

Prior to the war American, German, British, and Swedish manu¬ 
facturers were strongly in the market, with Japanese makers also 
competing, especially in South Manchuria. 

In exchange equipment and in telephone instruments the German 
Siemens Co. was very active in working for the central Government 
business and is openly accused of “squeezing” to secure favorable 
contracts. It was doing a fair amount of business when the war 
opened. The Swedish Ericksen Co. had most of the business in 
Canton, Hongkong, and Shanghai, in addition to other less important 
customers, and was a very strong competitor. Purely British. com¬ 
panies did not do a great deal of this class of business, the British 
Insulated Wire & Helsby Cables Co. being one of the strongest in the 
field; but an American company sold a considerable amount of 
equipment and material made in its English branch factory. This 
American company also sold equipment made at a Continental branch 
factory. 

Since the war began, competition from Europe has dropped' 
to practically nothing, and the United States and Japan are 
furnishing the market, with some Swedish and Norwegian goods 


CHINA. 


73 


coming in. One American company is selling boards and sub¬ 
scribers’ sets made in its Japan factory, and other Japanese goods 
are being pushed. Notwithstanding the cheap labor of Japan, 
American telephone manufacturers can turn out instruments as 
cheaply as that country. At present it is said that if American 
manufacturers could make delivery they could take all the business. 

Owing to the trying climatic conditions, which cause nickel 
plating to scale badly, one telephone manager suggested that a 
lacquered-brass finish for instruments, in place of the nickel, would 
work out very well. The Chinese can refinish such instruments, but 
have no facilities for taking care of nickel-plating work. The instru¬ 
ments used by this company, in all cases noted, had lacquered-brass 
finish, and he was able to speak from his own experience. However, 
the brass was generally badly tarnished in instruments observed in 
service. 

Certain foreign houses in the China trade have recently been trying 
to employ German “squeeze” methods of securing business from the 
central Government. In one case not long ago an American com¬ 
pany was the low bidder, but instead of giving the business to it 
the Chinese official in charge of the matter gave the American figures 
to another bidder and placed the contract with him at about the 
American figures. The American company, which was on the watch 
for such tactics, carried the matter to headquarters and gave it such 
publicity that most of the business was finally given it, with some to 
other bidders. 

When normal conditions are reestablished, it is believed that 
American telephone manufacturers will be able to compete readily 
for exchange equipment and subscribers’ sets in the China market. 
Sweden should be the strongest competitor on a quality basis, while 
Japan will come in with cheaper goods. The strength of Germany’s 
position in the market will be greatly affected by decisive defeat. 
Its trade prestige was based largely upon fear, and a decisive defeat 
of Germany in the war will result in its “losing face” with the Chinese, 
who have been taught by the Germans that the Teutons are a superior 
race. While American instruments before the war cost about the 
same as the Swedish sets, it was said by officials connected with a 
large exchange that American switchboards were a little higher in 
price than Swedish, amounting to as much as 10 per cent. This 
occurred at a time when costs in the United States were abnormally 


high. 

In intercommunicating telephones there is not much business 
open, though a campaign of education will, it is believed, show good 
returns. The only outfits seen were the British Sterling make, and 
for a five-point set the instruments cost $32 Mex. c. i. f. Hongkong 
in the spring of 1917. A Chinese dealer stated that in pre-war times 
Siemens (German) sets for 10 stations cost $19 Mex. each. American 
sets of this kind are far superior to the foreign makes. 

Before the war British and German cable held the market 
in China, an American company represented in China selling cable 
made in England, as British prices were said to be lower than Ameri¬ 
can. One of the largest users of cable in China stated that American 
prices were generally 10 per cent above those of British and German 
makers. On the other hand, an American telephone engineer in 
China said American manufacturers could compete with other makers 


74 


ELECTRICAL GOOfrS. 


of telephone cable. From a knowledge of relative prices quoted in 
competition in other countries, however, it is not believed that Ameri¬ 
can manufacturers can compete in this line unless some cooperative 
plan of buying of materials and of selling abroad is adopted. Since 
the war began Japan has been selling practically all the lead-covered 
cable used in China, and the Danish engineer in charge of the central 
Government telephone systems stated that it fulfills the specifications 
both mechanically and electrically and is in general good cable. 

A practice of German cable manufacturers may be of interest. 
As the cable was leaded, they stamped the measurement in the sheath 
at intervals of a few meters. This was very convenient, as in that 
way the amount of cable left on a reel could be determined at a glance. 
The plan is simple and might be adopted by American manufacturers. 
No sheath breaks have been traced to such stamping, nor has any 
other trouble resulted from it, and in China the high humidity makes 
the conditions for cable operation severe. 

In other classes of line materials, besides cable, American manu¬ 
facturers can furnish such items as steel pins and pole hardware to 
some extent, though much will be made up locally, as was noted in 
discussing power-distribution lines. Insulators will be furnished by 
Japan, with a strong probability that the Chinese Ministry of Com¬ 
munications will ultimately arrange for their manufacture by Chinese 
potteries. American manufacturers should be able, however, to do 
considerable business in pole cable terminals, junction boxes, pro¬ 
tectors, etc., it is believed. 

Japan will probably be a serious competitor in switchboard cords, 
etc., as it is giving satisfaction in these lines, apparently, where 
Japanese goods have been used. At Shanghai a special type of 
Japanese-made jumper wire was being used. The wire was enameled 
first and then rubber and braid covered in the usual manner. In 
the No. 20 S. W. G. (standard wire gauge, British) size this wire cost 
3 tael cents per yard prior to the war; in June, 1917, the same wire 
cost about 6 tael cents per yard. Prices are c. i. f. Shanghai with 
duty paid. 

TELEGRAPH EQUIPMENT. 

The telegraph system of China is operated by the Government 
under the control of the Minister of Communications and is generally 
conducted in connection with the telephone system. There is no 
likelihood of any lines being built by private companies. Statistics 
of the telegraph system as given by Mr. Eriksen, the Danish engineer 
in charge, show 40,016 miles of pole line erected, 1,002 miles of sub¬ 
marine cable, 102 miles of underground cable, 1,916 Morse instru¬ 
ments in service, 29 Wheatstone instruments, 659 telegraph offices, 
8 foreign employees, 5,922 Chinese employes, and 3,282 operators. 
These figures were given the writer at Peking in November, 1917, as 
the latest available, but are not up to date. 

As for line construction, No. 8 B. W. G. (Birmingham wire gauge), 
B. B. (“best best;’’ the highest grade is “extra best best’’) iron 
wire is used mainly and 5-inch top, 28-foot poles are set to carry two 
or three wires, while those for four to six wires have 6-inch tops and 
9-inch butts. Brackets and porcelain insulators are used to a large 
extent to carry the wire, but wooden cross arms are being employed 
to an increasing extent. The insulators are about 2.5 inches in 


CHINA. 75 

diameter by 3 inches in height, with a “ swan-neck” iron bracket 
lag-screwed into the pole. 

The method employed in sending Chinese characters is interesting. 
A number code is used and the characters listed total between 9,000 
and 10,000, each character with its number. It was said that the 
Chinese operators become so familiar with the code that they will 
send without consulting the code book. When one considers that 
a knowledge of two or three thousand characters is necessary to be 
able to read a newspaper in China, it is evident that the ability to 
remember at least this many numbers corresponding to characters is 
quite a feat. 

In the past most of the telegraph equipment used on the Govern¬ 
ment system has been either Siemens (German) or Great Northern 
Telegraph (Danish). The foreign supervision of the telegraph 
system is made up mainly of engineers formerly connected with the 
Great Northern Telegraph Co., a Danish cable company that has 
been operating in the Orient for many years and that in addition to 
being an operating company also makes a line of instruments. 
Naturally these engineers favor European goods. Very little in the 
telegraph line has been bought in the United States. 

At present the Government is not buying instruments to any 
extent, but is making up a Siemens pattern set in its own shop, 
buying relays and doing the rest locally. The cost of the instru¬ 
ments in that manner is considerably below their former price and 
the practice will probably be continued unless patent difficulties 
should prevent. In other lines the Japanese are getting the business, 
underbidding on cable and supplying it in full accordance with the 
specifications, it was said. The insulator and u swan-neck” bracket 
units used come from Japan, and with a 2.5-inch diameter by 3-inch 
high porcelain insulator; the complete unit cost in pre-war times, 
28 to 29 cents Mex. c. i. f. Shanghai. 

Except possibly in magnet coils and a few special fittings built to 
specification, it is not probable that American manufacturers will 
be able to get any amount of telegraph business in China. 

WIRING SUPPLIES AND LIGHTING FIXTURES. 

WIRING PRACTICE. 

There are no rules or regulations for wiring that hold outside of 
the city that has issued them, and it is only in Shanghai, Hongkong, 
Hankow, etc., that there are any such published regulations. In 
these cities British engineers are in charge and British standards 
largely predominate, with variations due to local conditions. The 
native central stations do wiring jobs according to their own desires 
apparently, and of necessity most of the installations are simple and 
cheap. 

In the larger cities most of the wiring is carried in wood casing 
where it is desired to conceal it somewhat, and knobs or cleats are used 
where the wiring is exposed. Conduit is used only in the case of large 
foreign buildings and of some of the later Chinese ones. This, in 
Shanghai, where conduit is used more than in any other city in China, 
amounts to only about 5 per cent of the total work done. The con- 


76 


ELECTRICAL GOODS. 


duit that is employed is the lightweight type made in accordance with 
British standards. Lead-covered duplex wire has been used to a 
small extent in a few cities. In the native cities the better class of 
work is in wood casing, but the bulk of the wiring is carried on small 
knobs or on cleats, with the latter probably predominating. Wiring 
in a bank manager’s office in Peking is shown in figure 5. 

The wire used in the larger cities is generally British standard Cable- 
makers’ Association grade of the 600-megohm class, and wire made in 
the same manner as C. M. A. wire is employed outside of foreign 
districts quite extensively. With the native central stations the 
quality of the wire is not closely scrutinized, however, nor is the 
method of applying the insulation. 

Both bayonet and screw sockets are used, the former made gen¬ 
erally in accordance with British standards. The screw sockets have 
often been of the cheap type made by Germany for the South Amer¬ 
ican trade, though a great many American-type sockets have been 
sold. It is believed that the screw socket will tend to predominate 
outside of stations controlled by British engineers, if manufacturers 
will make sockets of a quality such that the stations can afford to 
buy them. 

Tumbler switches and rotary switches of British and German makes 
have been used to a great extent, but snap switches are well liked and 
should in the future become the strongest seller outside of cities 
where British engineers dictate the practice, though even in many 
such cases the superiority of the snap switch over its tumbler com¬ 
petitor is appreciated and the former type is much employed. Amer¬ 
ican flush-type push switches have only a limited opportunity in China 
but are often used wherever the wiring permits, in the case of new 
installations. Pendant switches of British make, somewhat awkward 
and plain, are often employed to control lights in sleeping rooms, so 
that the lights can be turned off from the bed. 

The prevailing lighting fixture in China is a drop cord for both 
offices and homes. Cord adjusters are fitted in many cases. The 
shades are white opal, plain conical or made with flaring fluted edges 
for office and business installations; colored glassware of various 
shades of pink is popular for homes. However, while the drop cord 
is widely used, foreigners and the better class of Chinese like good 
fixtures in their homes and to some extent in their shops, and the 
demand has been sufficiently strong to cause a Chinese electrical 
dealer in Shanghai to make up locally a fair imitation of a well-known 
American semi-indirect lighting fixture, which has sold well in that 
city. 

As has been noted earlier in this report, the Chinese-operated 
central stations try to exercise control over all the installations con¬ 
nected to their systems, and so to do most of the wiring work. The 
company in Peking takes the bulk of the business by making an 
‘ ‘inspection charge” of $5 Mex. per connected lamp for all installations 
not made by its own crews, with a minimum charge of $25 Mex. 
Where the company does wiring it is said to do cheap work at a rea¬ 
sonable price. A five-light job cost about $40 Mex. in the fall of 1917; 
this price covered a cleat installation with switches, rosettes, drop 
cords, and sockets, but no shades or lamps. It also included the 
setting of the meter, for which a charge of $3 Mex. is made in the case 
of a house where service has previously been given. 


CHINA. 


77 


In Foochow, where there is a typical Chinese system, the company 
installs drop-cord lights at $5 to $6 Mex. each, using cleats; but this 
does not include a switch, which is not installed in the case of flat-rate 
consumers, the company evidently realizing the utter uselessness of a 
switch in such cases. In general, in view of the cheapness of labor 
and the quality of the materials used, the companies in China should 
pay dividends on their wiring work, and it is not to be wondered at 
that they make such an effort to keep out all competition. It may 
he noted, however, that in normal times, when the exchange is not so 
high, $40 Mex. is equivalent to about $18 in United States currency, 
and $5 to $6 Mex. means $2.25 to $2.70 in United States currency. 
On the other hand, the companies now pay out less Mex. money for 
each gold dollar of materials purchased abroad, so that in spite of 
increased prices of materials on a gold basis, they are costing little 
more in Chinese currency. 

MARKET FOR WIRING MATERIALS AND FIXTURES. 

Before the war American, British, German, Dutch, and to some 
extent, Japanese wiring materials were in the market. British and 
German houses sold the bulk of the goods, with the other countries 
selling a little in special lines. In wire England and Germany sold the 
most, with the United States getting a little business and Japan show¬ 
ing an increasing trade. Now the United States, the Netherlands, 
and Japan have been supplying the market, with the Netherlands 
dropping off as shipping conditions became more acute. Japan is 
furnishing the largest proportion of the goods consumed and is a 
very serious competitor for the future. 

As a comparison of quotations received for American and Dutch 
wire, a company in Hongkong was offered Dutch wire made in 
accordance with Cablemakers’ Association standards at $124 Mex. 
per mile, c. i. f. Hongkong, at the same time that it received a 
quotation of $145 Mex. per mile, c. i. f. Hongkong, for American wire; 
in both cases delivery was to be made in three months. The quota¬ 
tions were made in 1916. In November, 1915, Japanese agents sold 
No. 18 S. W. G., 800-megohm, 3-coated, insulated, rubber-covered 
wire c. i. f. Hongkong at $65 Mex. per mile, and No. 16 S.W. G., 800- 
megohm, 3-coated wire at $90 Mex. per mile c. i. f. Hongkong. In 
January, 1916, No. 18 Japanese-made wire similar to the foregoing 
sold for $34.50 in United States currency per mile, c. i. f. Hongkong; 
No. 16 S. W. G., for $49 in United States currency; 7/20 S. W. G., 
stranded, rubber-covered wire of the same class at $96 in United 
States currency per mile; and No. 18 S. W. G., 2-coated, rubber- 
covered wire of 300-megohm test at $29.87 in United States currency 
per mile. Delivery was to be made in 60 days and all prices were 
c. i. f. Hongkong. Cotton-covered flexible lamp cord of British type 
(Japanese-made), 35/40 S. W. G., cost $1.35 in United States currency 
per coil of 72 yards in January, 1916, and about $1,85 in United 
States currency a year later, the prices in each case being c. i. f. 
Hongkong. 

Prior to the war Siemens (German) wire was often sold to native 
central stations at prices only a little below those for American rubber- 
covered wire, whereas the wire was inferior. The practice of paying 
“squeeze” was common among German houses and probably accounts 
for the condition cited. 


78 


ELECTRICAL GOODS. 


One of the factors favoring Japanese and European rubber-covered 
wire manufacturers in the China trade is that they are accustomed to 
smaller standard sizes of wire than the trade in the United States. 
Since No. 18 S. W. G. (No. 16 B. & S.), which is standard abroad, is a 
size much used in China (with some smaller sizes), it is evident that 
American manufacturers are handicapped by being unable to quote 
on standard material. Stranded wire also is often used in foreign 
practice in sizes far smaller than Americans are accustomed to make, 
and this is another point in which manufacturers in the United States 
are handicapped. It is doubtful whether American rubber-covered 
wire manufacturers can hope to develop much trade in China in view 
of the conditions at home and of the Japanese competition that will 
have to be met. 

As was stated previously, little conduit is used in China, and there 
appears to be no opportunity for American conduit to compete for 
what little business is open. British conduit, described in the New 
Zealand and Australian reports of the writer, meets the limited require¬ 
ments of China better than the heavier and more expensive American 
conduit. 

In wiring materials, such as sockets, switches, and cut-outs, Ameri¬ 
can manufacturers should be able to do considerable business if they 
will meet the demands of the market more closely. China can not 
afford to wire in accordance with the rules of the American under¬ 
writers and only a limited trade can be built up on such a basis. This 
will be more true probably in the future than at present because the 
Chinese consumer class is becoming a larger percentage of the total 
each year, since native central stations are rapidly increasing in 
number, wdiereas the systems that serve foreign communities have 
been in operation for some years and are fairly well developed. 

The bayonet socket has been used to a large extent in China because 
British engineers have been in charge of many plants in that country 
and have followed British practice. As noted, however, the screw 
socket is much used, having been pushed by German houses as well as 
American, and appears to be increasing in favor. 

British-made keyless bayonet sockets cost about’ 7J to 8 cents in 
United States currency c. i. f. Hongkong prior to the war. Japanese 
manufacturers were selling them c. i. f. that port in 1917 at about 
$1.25 per dozen for the key sockets and $1.14 per dozen for the 
keyless sockets. Prior to the war German screw sockets were said 
to be quoted at 7 to 8 cents United States currency, c. i. f. Chinese 
ports. These sockets were said to be of very light and cheap con¬ 
struction, generally similar to those sold in Siberia, samples of which 
accompany the report on that country. (See Appendix B.) 

Screw sockets of both American and Japanese manufacture are 
being sold in China, the latter closely resembling American types and 
many being made by a Japanese manufacturing plant in which Ameri¬ 
can capital is interested. These latter sockets made in Japan are not 
so good as those made in the United States, however, according to 
users. 

While Japan will be a serious competitor in this line, it is believed 
that American manufacturers can compete in normal times, both in 
standard types and in a type similar to those developed by Germany. 
Sockets are sold at retail in 10-cent stores and cheap wiring shops in 


CHINA. 


79 


the United States that appear to have better quality than sockets 
made by foreign competitors for the export trade. While it is likely 
that these sockets are culls, the price at which they must have been 
sold would indicate that American manufacturers can compete in this 
line if they wish to make serious efforts to develop a volume of export 
trade. 

For outdoor work bayonet sockets have not been developed, and 
it is believed that China offers a good field for them. 

In switches the English houses have pushed the tumbler type and 
have given it a good start in the market. Rotary switches of both 
German and British makes have also sold to a considerable extent in 
China. American snap switches are well liked but have been higher 
priced than the tumbler, and do not seem to have been pushed to the 
extent they might have been. They are now being taken up more 
strongly. 

Prior to the war 4-ampere, 220-volt German rotary switches and 
British 5-ampere tumbler switches cost an importer 9.5 to 10.5 cents 
United States currency c. i. f. Hongkong, for an average-grade switch. 
Japanese tumbler switches in May, 1917, were quoted in Hongkong 
at about 14 to 15 cents United States currency c.i.f., and an American- 
type, 5-ampere, 220-volt, nonindicating snap switch, made in Japan, 
was sold to a large importer at that time at about 22.6 cents United 
States currency. In Shanghai large Chinese dealers said that Japa¬ 
nese 5-ampere, 220-volt tumbler switches were costing them about 
2 taels per dozen and 5-ampere, 220-volt snap switches, 3 taels per 
dozen c. i. f. Shanghai, during the summer of 1917. The tum¬ 
bler switches cited were the usual porcelain-base, porcelain-link, 
fluted-brass cover type similar to samples sent in with different re¬ 
ports. The rotary switches were of composition, while the snap 
switches were practically identical in appearance with American 
switches. Owing to the high humidity in China, importers have sug¬ 
gested the use of a polished-brass finish in lieu of nickel plate, since 
the latter finish deteriorates rapidly, while polished brass, perhaps 
lacquered, can be taken care of locally. When normal conditions are 
restored, it is believed that American manufacturers can compete in 
the market for switch business in spite of the Japanese competition. 

In other wiring supplies, such as porcelain cleats, knobs, tubes, and 
rosettes, it is hardly likely that American manufacturers will be able 
to compete; and if Chinese potteries take up the manufacture of these 
lines, as they probably will, the possibility of doing anything in such 
lines will be even more remote. 

Small Chinese shops in Canton are making attachment plugs, pend¬ 
ant switches, etc., samples of which have been forwarded with this 
report. They are mainly handmade, even to the screws, and can 
hardly compete very strongly in normal times, even with the cheap 
labor available, unless the use of at least some metal-working machin¬ 
ery is adopted. A standard, very simple, Chinese-made attachment 
plug for bayonet sockets was being bought by large dealers in Hong¬ 
kong at about 7.5 cents United States currency, delivered, and a 
three-way plug for bayonet holder cost about 32.5 cents United States 
currency, delivered at Hongkong. Both these articles were made by 
a small shop in Canton, probably on order from the Hongkong dealer, 


80 


ELECTRICAL GOODS. 


ELECTRIC FIXTURES AND GLASSWARE. 

Most of the fixtures that have been used in China appear to have 
been of a simple three or ijve light type with polished-brass finish, 
having a 24-inch spread as an average, with simple scrollwork and 
curved arms. While rigid stems are probably more general, a few 
cheap three-arm fixtures of the type suspended from lamp cord have 
been sold. In the last few years semi-indirect fittings have become 
popular with the class of people who could purchase them, for both 
homes and business houses. Ceilings are generally high and prob¬ 
ably run about 10 to 12 feet on the average—lower in the north and 
higher in the south of China. 

The China branch of a British electrical manufacturing company 
has apparently led in the direct-lighting fixture business, though it 
was said German houses did a large business before the war. The 
average fixtures were of the class that could be landed in China for 
about $4.50 to $5 United States currency for the three-light type, 
and about $6 to $7 for the five-light type, though of course more 
elaborate fixtures were sold to some extent. For this class of fixture, 
colored shades are used, a type costing the importer $5 to $6 Mex. 

E er dozen being popular. This shade was about 7 inches in diameter 
y 5 inches high, and one that was a deep rose at the top and then 
shaded out to almost a white at the bottom was said to be a favorite 
at that time. These shades retailed at $1 Mex. in the spring of 1917. 
They came from Japan. 

Semi-indirect lighting is rapidly gaining in favor among both for¬ 
eigners and Chinese. Most of this class of fixture is either purchased 
complete from the United States, or the bowls and chain are imported 
from the United States and the fittings are made up locally by the 
importer. This is the practice of the most important American house 
in the electrical trade in China. According to the local representa¬ 
tive, about 1,500 units made by one well-known American fixture 
manufacturer were in service on the main business street of 
Shanghai. It is in Shanghai that this type of lighting fixture has 
been most used. 

Japanese manufacturers are trying to turn out opal bowls for semi- 
indirect lighting and have sold a few on price. One Chinese dealer in 
Shanghai had bought 200 of these bowls at a price said to be only 
half that of similar American bowls. This glassware was bluish in 
daylight, and when the current was turned on the bowl did not 
diffuse the light but merely showed an orange spot where the lamp 
was located. The dealer was greatly dissatified with his purchase. 

Where drop cords are used, plain flat or shallow-cone opal shades 
are most common, with fluted and scalloped opal types also much in 
favor. In the past these shades appear to have come from England 
and Germany mainly, but now the stocks seen are Japanese. Prices 
for these types in May, 1917, were about $21 Mex. per gross for the 
8-inch size and about $25 Mex. per gross for the 10-inch size, the 
prices in each case being c. i. f. Hongkong. Standard types 
of opal shades are popular, but dealers stated that green and white 
combinations are not at all liked 

While all the electrical glassware used in China is imported, small 
shops in Hongkong, Shanghai, and Peking are beginning to makeup 
fixtures; and it is believed that in the future an increasing amount 
of the demand will be met in that way, though it is doubtful whether 


CHINA. 


81 


the present primitive methods will enable native makers to 
compete with foreign machine-made products. At present high 
ocean freights, high foreign manufacturing costs, and delays in foreign 
deliveries make it possible for these local fixture makers to turn out 
simple direct-fighting fixtures at a reasonable price. In Shanghai an 
enterprising Chinese is making faithful replicas of a well-known 
American semi-indirect unit, buying bowls in the United States but 
having enameled reflector parts made locally. Japanese manu¬ 
facturers are making fixtures, but none were seen in tne native elec¬ 
trical shops visited in China, though some of the cheaper “British” 
fixtures are said to be actually made in Japan. 

In Shanghai and Hongkong there is a small field for show-window 
fighting, but outside of these cities the possibilities are as yet very 
small. The most common window fight is. a drop cord with a 
scalloped opal shade. 

ELECTRIC RANGES AND OTHER HEATING DEVICES. 

Shanghai is the only city in China where the larger types of cooking 
and heating appliances have had much sale. There the compafty 
makes a rate of 3 tael cents and rents out radiators and cookers at 
50 tael cents per month. There were in service in the spring of 1917 
a little over 1,200 radiators, which average 2,000 watts each, giving 
a total connected load of 2,400 kilowatts for electric heating. This 
class of appliance should have a good future in China when the central 
stations generally can be induced to make rates that will enable 
consumers to use electric heat. The average native central station, 
however, does not appreciate load factor and is satisfied with what it 
is doing, so that it will take some time before electric heating will be 
taken up to any great extent. China, however, has a climate that 
should make electric heating a good load possibility and persistent 
propaganda work on the part of the local houses selling this class 
of goods should bring about a gradual increase in the use of electric 
radiators. There are plenty of consumers on the fines who can 
afford this kind of heat at a fair price for current. 

Electric cooking is different, however. The native cooks are 
accustomed to their old ways and are very wasteful of heat in prepar¬ 
ing food. Foreign women living in China seldom visit their ldtchens, 
leaving practically everything to the house boy and the cook. Cooks 
resent interference in their domain. Servants are cheap and a 
woman “loses face” if she does any work about the house to speak 
of. Coal ranges are much used in foreign kitchens; gas also is much 
employed where available, but there are only about five gas systems in 
China. European women complain that their servants have some of 
their own “chow” always on the stove, and that when gas is used 
the bills run up very high. A possible explanation is that the cook or 
the No. 1 boy gets a “squeeze” on all the coal used for cooking, and 
when a gas stove is installed this source of income ceases, so that it 
is to their advantage to make any other form of cooking than a 
coal or wood stove unpopular. 

The electric range, therefore, will be very slow in developing any 
business even among the foreigners, which is a very small field, 
though the municipal system in Shanghai is trying hard to make it 
popular. 

70005°—18-6 


82 


ELECTKICAL GOODS. 


Owing to the fact that the foreign woman, or the Chinese woman 
who would be in a position to have electric appliances in her home, 
never participates in housework to any extent and her servants prefer 
to do things in the way they have always done them, there is slow 
development in the use of the smaller electrical heating devices, 
the flatiron and small kettle being probably the only ones that have 
been taken up to any extent. These will probably show an increasing 
use, but existing home conditions naturally make any broad develop¬ 
ment impossible. 

American and British electric radiators and ranges are used at 
Shanghai, with the latter given the preference apparently in pur¬ 
chases by the municipal system. Prices were said to be generally 
the same, and American manufacturers should be able to compete 
for what business is open in China in these lines. In smaller devices 
American goods are superior to the British. Japanese manufacturers 
are coming in with cheap kettles and with crude irons in imitation 
of American irons, but‘these goods have little sale. A Chinese 
dealer in Hongkong had a Japanese 1-pint porcelain kettle in 
stock. This was made with a porcelain-clad cartridge-type unit 
sealed in, and consumed 200 watts. Including cord and plug, this 
kettle was retailed at $3 Mex., and the wholesale price was said to 
be $2.25 Mex. at Hongkong. The dealer volunteered that the 
device was poor and that he did not much care for it. 

The Japanese irons are roughly made, as a rule, and have poor 
nickeled finish. Prices seemed to run about the same as those of 
American irons of the average grades, but the Japanese article was 
much inferior. A sample iron was forwarded by the writer in 
connection with his Japanese report. (See Appendix B.) 

Owing to the high humidity in most of the larger cities in China, 
especially those where heating appliances of various types have 
their best market, great care should be taken in nickel plating. 
American heating devices that had been in stock only a short time 
showed rust and flaking of the nickel. Lacquered brass probably 
gives the best results in this market, since the natives are accustomed 
to it and can properly care for it, and certain things, such as kettles, 
might well be made of brass. 

FANS AND OTHER DOMESTIC AND OFFICE APPLIANCES. 

Only one item in general domestic and office appliances is selling 
to any extent in China; that is the electric fan, which is universally 
used on account of the hot, humid summer weather and which is 
one of the most important of American electrical exports to China. 
The exports of American electric fans to China and Hongkong are 
shown in the following table for the fiscal years 1913 to 1918: & 



1913 

1914 

1915 

1916 

1917 

1918 

China proper. 

Japanese Leased Territory. 

Hongkong. 

Total. 

$24,613 

200 

9,393 

$26,581 

3,694 

30,376 

$48,516 

12,944 

$17,506 

50 

25,552 

$32,570 
168 
22,083 

$115,974 

57,544 

34,206 

60,651 

61,460 

43,108 

54,821 

173,520 




















CHINA. 


83 


It will be seen that American trade increased when the war removed 
European competition and that it dropped off considerably in 1916 as 
deliveries from the United States became slower and as Japan began 
coming into the market more strongly. 

Prior to the war British, German, Italian, and Japanese fans were 
in the market, and standard American types competed well with any 
of them, though the foreign fans were often slightly lower in price. 
The British General Electric Co. fan was the most serious English 
competitor, the Marelli that from Italy, and the Allgemeine Elek- 
tricitats Gesellschaft and Siemens fans were strong German sellers. 
American fans generally had a good reputation, but the German were 
regarded as cheap. 

At present a half-dozen good American fans are in the market, 
with several Japanese competitors. The strongest of the latter is 
probably the Shibaura Engineering Works of Tokyo, which is allied 
with an American electrical manufacturer and makes a fan some¬ 
what similar to its product. Other fans from Japan are made by 
the Oki Electric Co. and the Sanden Electric Co., but these are not 
so good as the first-mentioned make. 

Both portable and ceiling fans are used, the former generally in 
the 12 and 16 inch sizes, both standard and oscillating. The 16-inch 
oscillating fan and the ceiling fan in about a 54-inch size are prob¬ 
ably the most popular. Smaller desk fans did not seem to be much 
in demand. Prior to the war a Siemens 12-inch standard three-speed 
desk fan cost about $17 Mex. c. i. f. Hongkong and was retailed at 
$20 Mex. Some of these fans were still in stock in Hongkong in the 
spring of 1917. Marelli fans were said to run about the same as 
American fans prior to the war, and other fans did not differ much. 
During the summer of 1917 one of the better Japanese fans was sold 
to dealers in Shanghai out of warehouse stock at the following prices: 
Twelve-inch standard, 14 to 15 taels; 12-inch oscillating, 19 taels; 
16-inch standard, 19 taels; 16-inch oscillating, 23 taels. 

Fans not only are given severe usage in China, as they are often 
operated continuously for a whole day or more, but the humidity 
conditions cause insulation leaks and breakdowns. It was said 
by one dealer that a certain American fan is the only one that 
can be run continuously without difficulty, that Japanese fans 
get hot quickly and also show leakage. A well-known American 
fan that enjoys the highest reputation in the United States was 
complained of by an importer, who stated that the fans leaked and 
that wall regulators burned out under the long-hour service demanded 
of fans in China. To check the former complaint a fan was picked 
at random from the display stock and started; the writer, standing 
on a dry wooden floor, received a distinct shock as he touched the 
frame of the fan. Another fan had been perfectly satisfactory in 
other years, but a native dealer said the 1917 stock “shook” too 
much. However, if American manufacturers will give complaints 
a little attention, their fans will obtain even a higher reputation than 
they now have. 

In ceiling fans American fans have an excellent hold on the market, 
and the attitude of many Chinese dealers toward the present com¬ 
petition is that stated by one who remarked, “Japanese fans no use.” 
One native dealer did not like the change in finish made by some 
American manufacturers who sent out fans with greenish painted 


84 


ELECTRICAL GOODS. 


frames and in some cases with the fan blades also painted. The 
Chinese buyers prefer a black finish to the fan body, with the blades 
and guard a polished brass. 

Other electrical appliances used in homes or business offices are 
not much in demand in China. The electric washing machine, 
at a cost of $100 or so, can not compete with the native washerman 
who does the laundry for about 4 cents Mex. per piece, for anything 
from a collar to a white duck coat, and even pays a small “squeeze” 
out of that to one’s servants. The vacuum cleaner can be sold a 
little in China, but the possibilities are limited; the same applies to 
sewing-machine motors, utility motors, etc. There is a fair field for 
electric sewing-machine equipment among native tailors, however. 

In offices there is little opening for anything but fans. Electrical 
or other adding machines have a very small field in competition 
with the native abacus, costing about 50 cents, and other labor- 
saving electrical devices are of small interest in the face of the cheap 
labor in China. 


MEDICAL AND DENTAL APPARATUS. 

With few doctors and modern dentists, there is only a small field 
in China for electrical apparatus for medical and dental purposes. 
Most of the hospitals that could afford them already have X-ray 
equipment; many of these hospitals are conducted by missionary 
organizations, and those supported by Americans can be reached 
through the headquarters in the United States. 

The dentists in China who are in a position to use electrical equip¬ 
ment are Americans and get their engines and supplies from the 
United States. Several dentists stated that no foreign salesmen 
had ever called on them in regard to dental apparatus, though they 
had purchased a few German supplies at times. Besides the Ameri¬ 
can dentists, there are a number of Japanese and Chinese “dentists” 
in the larger cities of China, but the former are not very well equipped 
as a rule, and it was said that a Chinese dentist usually starts out 
equipped only with a kitchen chair and a strong grip. 

As China develops there will be a number of good native dentists, 
foreign-educated, and manufacturers can do most for their future 
by attempting to guide these students toward American dental 
schools, as a man educated in the United States generally sticks to 
American equipment. 

OTHER ELECTRICAL EQUIPMENT. 

.The largest cities, with foreign population, have simple fire-alarm 
systems, but the municipal business open is so slight that no company 
is warranted in trying for it, except when asked for figures. There 
are a number of large factories that might be prospects for alarm 
systems and they appear to offer a more promising immediate 
future than any other field. 

The Chinese believe in signs, as any street view in China, such as that 
shown in figure 6 taken in Mukden, will give ample evidence. In 
a few of the larger cities fairly elaborate electric signs have been 
erected and it is believed that there is a good future for this class of 
business. However, the development will aid the central stations 


Special Agents Series No. 172. 



FIG. 6—STREET SCENE IN MUKDEN, SHOWING 
SIGNS. 



FIG. 7.—JAPANESE 10,000-KILOWATT STEAM-TURBINE UNIT, OSAKA. 

















Special Agents Series No. 172. 



FIG. 8.—GERMAN 11,000-VOLT CELL GROUP, JAPAN. 



FIG. 9—TOWER LINE OF KINAGAWA POWER CO. 












CHINA. 


85 


more than it will foreign sign makers, inasmuch as the signs will 
probably be made up locally. There should be a good opportunity 
to sell special sign sockets, sign transformers, and flashing apparatus, 
however. The large signs seen generally consisted of Chinese char¬ 
acters made up of sheet metal in a trough form and the lamps were 
set in the trough. In that way a view of the sign from an angle 
would still be legible, as would hardly be the case if the character 
were made up flat with the lamps mounted on the face. 

Many small Chinese signs were of the box type with ground glass 
on each face on which the characters were painted, with the lights 
inside. Some small shops had signs painted on plain opal ball shades 
on a bracket or gooseneck above the door of the shop. 

Possibly certain types of small American signs for use in windows 
can be sold in China. The Chinese appreciate sign advertising and 
seem willing to use electricity in connection with it. 

A sort of outline lighting scheme has been installed by a few native 
stores and restaurants in the larger cities, in which plain indoor 
brackets with a white opal (in one case a pinkish) shade have been 
mounted around the top and the corners of the building, with brackets 
also mounted over each window. The use of cheap indoor bracket 
lights scattered all over the outside of a building looks queer to an 
American, but it helped show the building, which was the object. 

Flood lighting was not noticed in the case of any buildings, but in 
Macao during a dragon festival a carnival archway was illuminated 
by a couple of flood lights said to be of American make. One Japa¬ 
nese manufacturer at least is making such equipment. 

It is the writer’s opinion that there is a fair opportunity for Ameri¬ 
can houses, especially in outline lighting, to build up a small trade 
in China. It is believed that the native restaurants in particular will 
be interested in this method of attracting attention and putting on 
“face.” 

CONDUCT OF TRADE WITH CHINA. 

CURRENCY AND FOREIGN EXCHANGE. 0 

There are three principal kinds of currency in China—the cash, 
the dollar, and the tael. The cash is a small bronze coin, pierced in 
the center for stringing, which is familiar in this country as a curiosity. 
Though it is being superseded to a considerable extent by the frac¬ 
tional dollar currency, it is still the commonest coin, especially outside 
of the large ports, for small retail transactions in which the Chinese 
alone are concerned. It is almost never used by foreigners and does 
not enter into foreign trade. It is customary to reckon the cash 
as roughly equal to one-tenth of a Chinese cent, but its ac.tual value is 
constantly fluctuating. It is independent of any gold or silver stan¬ 
dard. 

The dollar currency is the official circulating medium of China. 
The basic unit is a silver dollar, adapted from the Mexican dollar 
and containing 0.779976 of an ounce of fine silver. According to the 
quarterly statement of the Director of the United States Mint with 
regard to the value of foreign coins, the Chinese dollar is equal approxi¬ 
mately to 0.644 of a haikwan tael; therefore it is equivalent to 0.7174 

a a portion of this section was adapted from Miscellaneous Series No. 70, The Conduct of Business with 
China. 





86 


ELECTRICAL GOODS, 


of a Shanghai tael, at the official ratio between the two taels. (See 
paragraphs on the tael.) 

The new dollar circulates freely and is becoming more and more 
the standard coin of the country, though it is still discounted in cer¬ 
tain localities, especially in the south. It is indicated by the same 
sign ($) as the United States dollar, and sums in United States cur¬ 
rency are distinguished locally by the letter “G” (gold). The 
official Hongkong dollar is common in South China, and several other 
local dollars are in circulation. The word “ dollars” is frequently ap¬ 
plied in China to other currency units originally based on the Mexican 
dollar—even to the Indo-China piaster and the Philippine peso. In 
the districts under Japanese control the Chinese dollar or its equiva¬ 
lent is sometimes called a ‘'silver yen” (SY). Prices in silver dollars 
of any kind are usually quoted as “Mex.” 

The national currency includes silver 20 and 10 cent pieces and 
bronze cents, which fluctuate independently of the dollar of which 
they are nominally fractions. This fractional currency is locally 
known as “small money,” to distinguish it from the integral dollar 
currency, which is called “big money.” As far as foreigners are con¬ 
cerned, the “small money” appears only in minor retail transactions; 
but it is necessary to understand the distinction because it usually 
exchanges with “big money” at a discount of 10 to 20 per cent of 
its face value. As regards the subject matter of this report the 
“small money” is important in connection with the margin between 
importers’ and retail prices on small electrical supplies and in connec¬ 
tion with the operations of street-railway and electrical-supply com¬ 
panies, as street-car fares and the wages of Chinese laborers are ordi¬ 
narily paid in the fractional currency, while all expenditures except 
for labor are made in “big money.” In the annual statement of a 
company operating a street railway in one of the treaty ports, a 
deduction of 20 per cent was made from gross earnings on account of 
the depreciation of “small coins.” 

The Chinese Government issues no paper currency, but the Govern¬ 
ment-controlled Bank of China and Bank of Communications issue 
notes, which are not at present freely redeemed in specie and circulate 
only at heavy discounts. The foreign-exchange banks issue in dollar 
currency notes that circulate at par in the locality where issued and 
at a small discount (usually about 2 per cent) in other parts of China. 

The dollar currency is beyond doubt the coming standard of 
China, though the tael will continue to rule for a long time in com¬ 
mercial transactions. The dollar is now the medium for all cash 
payments in which foreigners are concerned, for most small personal 
bank accounts, and to an increasing degree for general retail business. 
It is used little in wholesale business and very rarely in foreign trade. 

The tael is not a coin but a weight of silver of a given fineness. 
The weight of the haikwan, or Maritime Customs, tael is the same as 
the standard tael weight (1J ounces), and its relation, fixed by 
treaty, to the other important taels, is as follows: 100 haikwan 
taels = 101.642395 kuping, or Treasury, taels, 105.215 Tientsin taels, 
and 111.4 Shanghai taels. One hundred kuping taels are equal to 
109.6 Shanghai taels. The ratio of the haikwan to certain other 
commercial taels is fixed from time to time by the customs authori¬ 
ties. The haikwan and kuping taels are the only important ones 
distinguished by their use; for the other taels the distinction is 


CHINA. 87 

mainly geographical, every important commercial center having its 
own tael. 

As there are no coined taels, payments in this medium are supposed 
to be made in silver bullion, or “sycee.” This is usually in the form 
of ingots of a peculiar shape known as “shoes,” which weigh about 
50 taels each. Between foreigners and Chinese firms, however, tael 
transactions are settled either by negotiable paper or by conversion 
into dollars. While this inconvenience is driving the tael out of use 
in cash and retail transactions, it is maintained as the standard 
currency of the country by the conservatism of the people, the in¬ 
fluence of the great exchange banks, and uncertainty as to the purity 
of much of the silver in circulation. 

The tael is not used in Hongkong and is less dominant in the trade 
of South China than in that of the center and north. The Govern¬ 
ment of Hongkong, moreover, restricts the circulation of dollar 
currencies other than its own. 

The Chinese purchaser buys abroad for gold and sells his imported 
goods for silver. The gold values to-day are equivalent to a certain 
number of taels, while to-morrow they may be quite different. 
With this constant fluctuation in the number of taels that will be 
required to pay for a given amount of goods, the buver is always on 
the alert to place orders when exchange is most in liis favor. This 
is when the price of silver is high and imports are slack. When 
silver is high, the buyer can get more gold dollars for his silver money, 
and when there is no rush of imports there is no competition m 
exchanging silver for gold and no tendency to raise the price of gold 
through the run on the market. On the other hand, the exporter 
finds it the best time to sell when the opposite conditions prevail. 
Trade is therefore sympathetic to some extent with the variations 
in the exchange between silver and gold, which is fixed almost from 
hour to hour by the banks. A complicating feature is the fact that 
the local currencies fluctuate independently of international exchange, 
and local fluctuations may make it difficult to sell goods at a particular 
time in a given district. 

For almost a year gold has been “cheap” in China, owing to the 
enormous purchases of silver by the warring nations and to the drop 
in the wond’s production during the last few years, caused by the 
disturbances in Mexico. So far as exchange only is concerned, 1916 
was favorable to the purchase of goods abroad; but purchases were 
somewhat limited by other factors, such as extremely high prices, 
delayed deliveries, and uncertainty as to the continuance of the high 
exchange. The trade of China, under the complex war conditions, 
has been generally prosperous; but in the long run it has been found 
that a low exchange rate is more favorable to an active foreign trade 
because the Chinese obtain the money to purchase foreign goods 
from the sale of Chinese products for export. Normally, therefore, 
a high exchange rate limits exports and thereby indirectly limits 
imports. 

When foreign goods are purchased, the Chinese buyer or the import¬ 
ing house enters into an exchange contract with a bank in the port 
of importation, which acts as agent for that bank in the country of 
origin to which the documents covering the purchase are hypothe¬ 
cated. These exchange contracts are usually arranged by bullion 
brokers, who receive commissions from the banks and also special 


88 


ELECTRICAL GOODS. 


rates, so that there is no advantage in dealing with the banks direct. 
If the contract calls for the purchase of goods at a price in gold, the 
buyer usually pays for the goods on a c. i. f. basis and, in addi¬ 
tion, pays the interest on the draft and the profit of the import¬ 
ing house. Contracts made at a silver price often stipulate that the 
importing house is to look after the bank and other charges. In 
such cases the price that is paid by the Chinese buyer includes the 
importer’s profit and the interest on the draft, and the goods are 
said to be sold on a c. i. f. c. i. basis; i. e., cost, insurance, freight, 
plus commission (more properly, profit) and interest. Both methods 
are common; the practice varies with the importance of the trans¬ 
action and the nature of the goods. 

The fluctuations in exchange make it difficult to state accurately 
in United States currency domestic prices in China, local costs of 
production, etc. It has been deemed best, therefore, to make no 
conversions of figures of this sort in this report but to present a 
table showing the exchange rates, month by month, for several years. 
The electrical-goods investigation covered the period from about the 
middle of May to the end of July, 1917. 

The following table shows the average exchange rates of Shanghai 
taels and silver dollars for 1912 and 1913 and for each month from 
January, 1914, to March, 1918. Actual quotations for the silver 
dollar for this period are not available; the rates given were obtained 
by multiplying the Shanghai tael by 0.7174: 


Years and months. 


1912 . 

1913 . 

1914: 

January... 
February.. 

March. 

April. 

May. 

June. 

July. 

August 

September. 

October.... 

November. 

December. 

1915: 

January... 
February.. 

March. 

April. 

May. 

June. 

July. 

August.... 
September. 
October.... 
November. 
December. 


Shanghai 

taeis. 

Silver 

dollars. 

Years and months. 

Shanghai 

taels. 

Silver 

dollars. 

$0.66 

$0.473 

1916: 




.66 

.473 

January. 

$0.61! 

\ 

$0.443 



February. 

.62! 


.447 

• 62f 

.447 

March. 

• 64; 

i 

.460 

• 62| 

.449 

April. 

.681 


.491 

.63* 

.453 

May. 

•74j 

■ 

.534 

.64| 

.461 

June. 

.69; 


.501 

.62| 

.450 

July. 

.66, 


.475 

.61! 

.441 

August. 

.70, 


.506 

.56| 

.407 

September. 

. 72 ; 


.523 

• 55| 

.399 

October. 

.73 


.528 

. 56! 

.405 

November. 

. 79 ; 


.568 

.53“ 

.380 

December.<_ 

.83= 


.601 

.53| 

.386 

1917: 




.54| 

.390 

January. 

.821 

.590 



February. 

.851 

.614 

• 54| 

.390 

March... 

.80! 


.579 

• 54| 

.388 

April. 

.831 


.598 

. 55! 

.398 

May. 

.84i 

.606 

• 55f 

.399 

June. 

.88 


.631 

. 55! 

.398 

July. 

. 91| 


.657 

.545 

.394 

August. 

1.001 


.722 

• 53$ 

.383 

September. 

1.15* 

.827 

• 52| 

.379 

October. 

.955 

.684 

.53! 

.383 

• November.. 

.97? 

.698 

.545 

.394 

December. 

1.002 

.724 

• 57§ 

.412 

1918: 




.60| 

.433 

January. 

1.03 


.739 



February. 

1.02* 

.734 



March. 

1.02* 

.734 


CUSTOMS TARIFF. 

All Chinese customs duties are nominally 5 per cent ad valorem. 
China’s tariff is for revenue-raising purposes only and is conducted 
by the Maritime Customs service, made up of foreigners who are 
citizens of the various treaty powers, with an inspector general at 


































































CHINA. 


89 


the head. Chinese are used in subordinate positions mainly. The 
revenue from duties, import and export, is pledged to meet loans 
made by foreign powers, and the administration of the Maritime Cus¬ 
toms is in foreign hands. The personnel of the staff is made up of 
subjects of various nations somewhat in proportion to the trade of 
those nations with China. 

Goods that have paid the import tax at one treaty port can be 
shipped to another treaty port without payment of further duty, 

E rovided this is done within three years, and they are accompanied 
y a “pass” showing that the duty was originally paid. This en¬ 
ables a large stock to be held at a central point such as Shanghai, 
and distributed as needed to other treaty ports like Hankow, Canton, 
and Tientsin without the payment of further duty. 

The tariff schedule covers all goods arriving by sea. If they come 
in overland, shipments are entitled to a reduction in duty of about 
one-third. This variation and its effect on trade in South Manchuria, 
where shipments are entered through Antung via the Chosen Rail¬ 
ways from Japan, have already been discussed. 

Duties paid to the Maritime Customs entitle goods only to entry 
into such Chinese territory as is included within treaty-port limits. 
As soon as goods are shipped outside of treaty ports they are subject 
to various other taxes, principally likin or transit duties. The likin 
tax is supposed to have been one-tenth of one per cent originally, 
but now is anything above that. Not only does the rate depend 
upon the official who collects it and how badly he needs the money, 
but the tax is assessed at various places and goods must pay at each 
station. In the case of a city far inland, the likin may amount to 
a very considerable percentage of the cost of the goods, by the time 
they reach their destination. However, by the treaties with China, 
it is provided that foreign goods may be exempt from likin en route, 
provided they pay a transit tax to the Maritime Customs of one-half 
the regular import duty in the case of dutiable articles or per cent 
on goods that are duty free. 

In discussing the likin tax, the China Year Book for 1916 gives a 
very definite idea of the conditions surrounding the collection of 
such duties in the following passage: 

Likin is a tax imposed upon goods in inland transit. Originally levied to meet tha 
additional expenditures caused by the Taiping rebellion, it was first imposed in 1853, 
but in 1861, when the Taiping and Mohammedan rebellions were simultaneously in 
progress, the tax was extended throughout the country. Likin stations (barriers) 
exist at all large towns and are placed along the main routes of commerce, both by land 
and by water. An official tariff is in existence, but it is practically ignored by both 
officials and traders; by the former in order to allow for “squeeze,” by the latter in 
order to pay the enhanced rate (which would be imposed in any case) on a less amount 
of goods than is actually being cleared. This incidence of bartering and coming to 
terms in the matter of likin renders its imposition the more severe on railway lines, 
where the specified weight of goods is recorded and offers little opportunity of “ad¬ 
justment” to the mutual convenience of likin official and trader. For this reason 
goods traffic on certain lines where likin is heavy at the towns en route (e. g., Shang- 
hai-Nanking Railway) is seriously affected. Guilds and regular traders meet likin 
charges by the payment of lump sums. The tax collected is generally 3 per cent at 
the departure station, and 2 per cent at each inspection station. The amount col¬ 
lected within a Province, however, is usually so arranged as not to exceed 10 per cent, 
but when goods are transported through several Provinces it may reach from 15 to 20 
per cent or more. 

There has been considerable trouble at times over the interpreta¬ 
tion of the clause in the treaty that provides for a transit pass and 


90 


ELECTRICAL GOODS. 


exemption of payment of any inland duties. Some Chinese officials 
have claimed that this exemption covers only duties levied on the 
goods while they are in transit, and that it does not exempt the 
goods from payment of taxes at destination. 

TRADE-MARK SITUATION. 

A treaty between the United States and China was signed in 1903 
to cover the matter of imitation of American trade-marks in the 
China trade. This treaty states: 

Whereas the United States. undertakes to protect the citizens of any country in 
the exclusive use within the United States of a lawful trade-mark, provided that 
such country agrees by treaty or covenant to give like protection to citizens of thj 
United States: 

Therefore, the Government of China, in order to secure protection in the United 
States for its subjects, now agrees to fully protect any citizen, firm, or corporation of 
the United States in the exclusive use in the Empire of China of any lawful trade¬ 
mark to the exclusive use of which in the United States they are entitled, or which 
they have adopted and used, or intend to adopt and use as soon as registered, for 
exclusive use within the Empire of China. To this end the Chinese Governmant 
agrees to issue, through its proper authorities, proclamations having the force of law, 
forbidding all subjects of China from infringing on, imitating, colorably imitating, 
or knowingly passing off an imitation of trade-marks belonging to citizens of the United 
States, which shall have been registered by the proper authorities of the United 
States at such offices as the Chinese Government will establish for such purposes, on 
payment of a reasonable fee, after due investigation by the Chinese authorities and 
in compliance with reasonable regulations. 

Treaties arranging for cooperation in the matter of preventing 
articles infringing on trade-marks from being sold in China have 
been made by Great Britain with Belgium, Denmark, France, 
Germany, Japan, Netherlands, Portugal, Russia, and the United 
States. 

The treaty between China and the United States provides for the 
establishment by the Chinese Government of offices at which Ameri¬ 
can trade-marks are to be registered. In attempting to work out 
some method of handling this business and at the same time suitable 
regulations, the Chinese authorities submitted different propositions 
to the United States and other countries interested, but these were 
not satisfactory and revision of the plans was requested. Before 
the matter had been settled, the revolution occurred, and since the 
Republic was established no further action has been taken. At 
present, China has no law covering the use or registration of trade¬ 
marks, and the protection of American trade-marks is handled under 
the treaty quoted. 

As far as American goods are concerned, imitations have been 
promptly suppressed as soon as complaint was made. In the case 
of a dry-cell line, which was being imitated by a Chinese outside of 
the international settlement in Shanghai, complaint was made by 
an American importer through the American consul and the Chinese 
authorities damaged the shop equipment and confiscated the raw 
materials. 

A well-known make of American semi-indirect lighting fixture is 
-being copied in Shanghai by; a local Chinese dealer, and the matter 
is being taken up with a view to putting a stop to the practice. 
Near Canton a Chinese foundry is copying a well and favorably 
known Swedish crude-oil engine, even using the same name. The 


CHINA. 


91 


Chinese engine is rough looking and does not deceive anyone as to 
its origin, but it is said to operate well and it sells for about half the 
price oi the Swedish units. The writer called on the manager of the 
Swedish import and export house that handles this engine, and, 
though this manager was Swedish vice consul at the port in question, 
he stated that he was unable to get the Chinese authorities to sup¬ 
press the manufacture of the imitation. 

There is not a great deal of such work done in China; but goods 
with American trade-marks that are imitated in Japan within the 
law, because American manufacturers did not take pains to protect 
themselves there, are being sent into the China market to some 
extent, though not in the electrical trade. 

American consuls generally state that whenever a complaint is 
made of the infringement of an American trade-mark they have no 
trouble in securing prompt suppression of the infringement. If 
American manufacturers will arrange to have their trade-marks 
registered by the consuls general in China, any complaint of infringe¬ 
ment will have prompt attention. As soon as China establishes 
regulations for the registration and protection of trade-marks, 
manufacturers should at once take steps to comply with these new 
rules. Failure to p>ay attention to such details has cost American 
manufacturers considerable money in Japan. 

SELLING METHODS IN CHINESE ELECTRICAL TRADE. 

English, German, American, Danish, Belgian, Swedish, and 
Japanese electrical goods are sold in the Chinese market in normal 
times, and the manufacturers are represented by their own branch 
houses, by local importing houses acting as manufacturers’ agents 
with exclusive sales rights, or by commission houses that are branches 
of export houses in the home country. 

The importers generally sell the goods, except in the case of ap¬ 
paratus bought direct by central stations, to Chinese dealers, who 
act as jobbers and distributors through out-port merchants. These 
sales are made through “ compradors,” who may be termed native 
credit men. They go further, however, than merely passing upon 
the financial standing of the Chinese dealers to whom the house sells 
goods, in that they generally guarantee the credit and are themselves 
under bond. In addition, they keep in close touch with business 
conditions generally and know how stocks are moving. They also 
handle the native employees, engaging and paying them. Com¬ 
pradors are given a fixed salary and usually in addition a small 
percentage on sales, and they themselves take care of the collection 
of further emoluments in the way of “squeeze” from buyers who 
may want some favor, from natives who want positions, and from 
natives for whom they have obtained positions. 

Working through a comprador has in many cases prevented the 
importer from obtaining the knowledge of local conditions that he 
should have in order to operate his business to the best advantage. 
Again, the foreign merchant loses the advantage that comes from 
intimate contact with the buyers. Foreign merchants have some¬ 
times lost considerable money through a comprador having 
“ squeezed” most of the profits; these instances occurred where the 
foreigner placed implicit trust in his comprador and did not hold 




ELECTRICAL GOODS, 


him very strictly to account. It would seem that the most success¬ 
ful importer of the future will speak the language and will “mix” 
more with his customers than has been the custom in the past. 

SELLING GOODS FROM STOCK. 

The method of selling goods from stock has been used for some time 
by the Germans and to some extent by the British and has been 
adopted by the Japanese. Houses selling American electrical goods 
have not sold from stock in the past to any extent, but one large 
agency is now adopting the policy. Except for a range of smaller- 
horsepower motors, little apparatus is stocked. 

There are two great advantages in selling electrical goods from 
stock. One is the prompt delivery that can be made of at least a 
portion of an order. In many instances if a buyer can obtain at 
once a part of his goods, he is willing to wait for the rest. Another 
very important advantage in selling from stock in China is that the 
Chinese buyer wants to see what he is getting. He must see at least 
a sample, which many houses can not show him in motor and similar 
lines. However, he has been fooled many times by good samples 
and poor goods, and a stock from which he can draw at once at least 
a part of his order is a strong factor in obtaining his business. 

American import houses have several times fallen down in getting 
their goods delivered in the market at the proper time, in the case 
of seasonal things, such as fans. The Japanese have taken advan¬ 
tage of this failure and the bad impressions made. During 1917 they 
kept a large number of fans in stock at Shanghai and were making 
many sales on their ability to deliver the goods promptly. The Chi¬ 
nese dealers understood the inferiority of Japanese fans, but said they 
could always send over to the godown and get some when they needed 
them. 

In the case of seasonal goods also, a stock at a central point enables 
advantage to be taken of an unusually favorable season, such as 
existed in China during the present summer. Fans were in great 
demand, and the Japanese manufacturers, through their local Japan¬ 
ese importing houses who carried stocks, were able to sell all that 
their factories could make. 

There is, of course, the danger of being caught with a large stock 
of- goods during an off season or of having to carry a considerable 
quantity over the winter, but these are risks that are inherent in any 
merchandising business. A representative with outside connections, 
such as an export house that has offices in other ports of the Far East, 
might be able to reship the goods to another place, where the demand 
comes at a different time of the year. The matter of duty, etc., in 
addition to the interest, storage, and insurance charges, will have to 
be considered in attempting any such proposition, which would 
hardly be justified except where it is necessary to make the most 
of limited capital. 

In connection with their sales from stock, the Japanese have the 
advantage of being close to their factories and of having good and 
frequent steamer service. There is a line of Japanese steamers giving 
semiweekly service between Yokohama and Shanghai and touching 
at intermediate ports of Japan. The run is only four days from Kobe 
to Shanghai, so that prompt deliveries are possible. The Japanese 


CHINA. 


93 


houses, therefore, need to carry a relatively small amount of stock, 
as compared with American importers, whose shipments are on the 
seas from New York at least two months and from San Francisco 
about one month under existing conditions. 

In all their commercial dealings with the Chinese the Japanese 
importers have adopted a sales policy different from that of most of 
the European houses observed. The latter depend a great deal upon 
the comprador for business and for information as to pending oppor¬ 
tunities. The Japanese Iiouses in the electrical trade, however, have 
their own men calling on the dealers at regular periods, just as Ameri¬ 
can jobbers do at home, and they naturally get well acquainted with 
the buyers and pick up odds and ends of business without any com¬ 
petition, in addition to quoting on larger inquiries. Having stocks 
in Shanghai, they are able to go out and solicit business in this way 
and handle immediate delivery orders “ex godown” at good prices, 
when quality is considered. 


CONSIGNMENTS. 

The practice of shipping goods on consignment is not common in 
the electrical trade, but in the introduction of new goods small stocks 
so shipped will aid much in developing the market. Naturally, con¬ 
signments would be made only to reliable houses. It is hard to 
determine in advance how the Chinese will take to a new line, and 
the exporter can often cooperate with the importer in this way to 
their mutual advantage. 

Shanghai banks wifi sometimes aid importers who are sound but 
are working on limited capital. A shipment arrives with draft at 
90 days sight attached to bill of lading, giving the importer that 
amount of time in which to sell his order, which is probably stored 
in the bank’s godown. He will be likely to sell the goods in small 
lots and the bank will permit him to obtain delivery of a portion at 
a time, upon payment for the goods actually taken out. This plan 
requires payment in advance, whereas consigned stock is delivered 
and billed for after withdrawal. 

SELLING ON COMMISSION. 

Quite a number of electrical-supply lines, such as dry cells, fans, 
and heating appliances, are sold on commission. The Chinese dealer 
places an order with a commission house, which then orders the goods 
through its representative in the United States, handling the account 
as its own and arranging for payment of the bill. When the goods 
come it delivers them to the dealer and charges him a commission 
of 2 per cent and upward for handling the business. In many cases 
the commission houses accept orders from a dealer with prices speci¬ 
fied delivered at Shanghai, the goods to be in accordance with 
sample. The commission house then buys through its American 
agent at best market prices and handles the business on the margin 
between its landed costs and the prices at which the goods were 
sold to the dealer. 

Some American manufacturers selling abroad through export and 
import houses with which they have no agency arrangements do not 
pay much attention to their foreign business and are not in touch 


94 


ELECTRICAL GOODS. 


with the requirements of the market. Such houses may fail to observe 
suggestions from the importing house or complaints as to the quality 
of the goods or may increase their prices, so that the importers’ agent 
in the United States decides to try some one else whose product is as 
near as possible to the one that he has given up. The article that he 
finally snips may be as good as the sample or better but there is 
complaint that it does not conform to sample. Chinese dealers are 
beginning to ask for “shipping samples” to accompany the shipment. 
These are packed separately and are representative of the goods; if 
they check with the sample on which the business was placed the 
dealer feels that his order is satisfactory. 

SALES METHODS FOR POWER-STATION EQUIPMENT. 

Outside of treaty ports only Chinese can own land, and this restric¬ 
tion makes it difficult for foreigners to build public utilities. Power- 
plant apparatus and similar construction equipment and materials 
are therefore sold to native corporations. 

German companies have taken considerable of this kind of business 
by judicious long-term contracts, by virtue of which they frequently 
received, in consideration for long terms of credit extended, all the 
supply business of the central stations. They also specified in the 
contracts that any additional equipment used in increasing the capac¬ 
ity of the plants during the life of the agreement should be purchased 
from them. The contract was drawn so that payments for the plant 
extended over 5 to 10 years, in some cases, but the early payments 
were large, so that after a year or two the greater amount had been 
repaid. This plan turned their long-time credits into a profitable 
business as long as they kept in close touch with the station and did 
not lose much of the supply purchases, which they might by trying 
to make too large a margin of profit. 

Other houses are now doing the same thing and this is helping 
electrical development in China. Newer terms which the central 
stations now obtain are not so binding in the purchase of general 
materials, but there is always a clause m which the power company 
agrees to buy additional station equipment from the contracting 
house until tne indebtedness on the original plant shall have been 
paid in full. In granting credit to an electric-lighting company the 
import house, if its notes are not paid, has not much recourse, in that 
no foreigner can own land outside of a treaty port. If the company 
fails to meet its payments the seller can not take over the plant and 
operate it but must either hold it for sale or dismantle it. The 
foreign houses try to protect themselves by getting a good percentage 
down and large installments within a short time after the plant has 
been placed in operation. 

As an aid to control over the plant, it is provided in many instances 
that the chief engineer of the plant shall be obtained from the import 
house and that he shall have general supervision of affairs and in a 
way act as a representative of the seller. This man as a rule super¬ 
vises construction work and calls for the materials he needs, which 
materials are, wherever possible, those handled solely by the import 
house for which he is acting. Import houses are continually on the 
lookout for an opportunity to recommend a man to take charge of 
native plants, where the field is open, and this man is supposed to 


CHINA. 


95 


“throw” all the business he can to the house that suggested him for 
the position. In some instances there was more or less suspicion 
that such a man received a regular subsidy from the import nouse 
in addition to his salary. 

INFLUENCE OF EDUCATION ON SALES. 

A considerable number of Chinese have taken engineering degrees 
at American universities and many have later spent some time at 
work in American factories and plants. Returning to China these 
men can be and are a factor in shaping the demand for American 
standards in electrical work. In the United States they have been 
accustomed to American station equipment, American outside con¬ 
struction, and American wiring practice, and when they take up 
engineering work in their home country they try to adhere to these 
standards. 

However, many features in the American standard practice can 
not prevail in China, where the purchasing power of the people is 
much lower than it is in the United States. American manufacturers 
must make their standards conform as much as possible, without 
sacrificing reliability, to the ability of the country to purchase elec¬ 
trical goods. It would not be good engineering to build too expen¬ 
sively in the face of a limited purchasing power, such as exists in 
China. 

Many Chinese have been educated in Japan and these show a lean¬ 
ing toward the use of Japanese materials. A young Chinese engineer 
who was a graduate of a Japanese university said that the lower cost 
of schooling in Japan as compared with the United States is one 
of the strongest reasons for the large number of students that have 
gone to the former country. He appreciated the inferiority of 
Japanese schools, but remarked that the cost to a student in Japan 
is only about $500 Mex. per year, whereas in the United States 
the expense is considerably higher. Japan is also much closer than 
the United States, and it appears to the writer that this is a greater 
factor than the difference in cost. 

Through the Boxer indemnity fund available for educational pur¬ 
poses, the United States is training a great many more Chinese stu¬ 
dents than it would otherwise. There is, nevertheless, no reason why 
a larger number of men can not be prevailed upon to go to American 
universities. The returned American students nave a good organiza¬ 
tion in China and as a rule are enthusiastically for the United States. 
Cooperation between the returned American student organization 
and some American society can be worked out and should be of value 
to both. The men who have gone to school in the United States gen¬ 
erally look back with a great deal of affection upon the college days 
in the United States and want to keep in touch with men and condi¬ 
tions there. 

To educate Chinese engineers to make use of British standards the 
Hongkong University was established a few yea:s ago. This insti¬ 
tution has a semiofficial standing with the colonial government, the 
governor of Hongkong being honorary president of the institution. 
The faculty is all British and the cooperation of English manufac¬ 
turers of electrical and mechanical equipment was solicited in equip¬ 
ping the testing and training laboratories of the college. A member 
of the faculty of the College of Engineering stated that the apparatus 


96 


ELECTRICAL GOODS. 


so far obtained, which was fairly complete considering the size of 
the school, had been given outright in a majority of cases. 

Japanese manufacturers likewise appreciate the value of intro¬ 
ducing their goods to Chinese students and have been very astute 
in selling electrical equipment to governmental schools for the use 
of classes in physics and in industrial work. The Japanese equip¬ 
ment personally seen by the writer was not of a very high grade and 
had created a poor impression. 

There are many governmental and mission schools with which 
American organizations or manufacturers, through their representa¬ 
tives in China, can cooperate, and it is believed that concessions 
made in the purchase price of apparatus destined for use in institu¬ 
tions of learning will ultimately pay dividends. 

BANKING FACILITIES-TERMS AND METHODS OF PAYMENT. 

Besides several large Chinese bank systems, there are in normal 
times American, British, French, German, Japanese, Russian, Bel¬ 
gian, and Dutch banks operating in the large centers. There is only 
one American bank, the International Banking Corporation, which 
has branches in Shanghai, Hongkong, Peking, Hankow, and Canton. 
The principal foreign banks, in addition to the American bank, are 
the Hongkong & Shanghai Banking Corporation, Chartered Bank of 
India, Australia, and China, Mercantile Bank of India (Ltd.), Russo- 
Asiatic Bank, Banque de Plndo-Chine, Yokohama Specie Bank, 
Banque Industrielle de Chine, Banque Sino-Belge, Nederlandsche 
Handel-Maatschappij, and the Bank of Taiwan (Ltd.). 

In electrical goods the Chinese dealer in Shanghai, or possibly 
one of the smaller ports of entry, usually places an order with an 
import house, the import house buys the goods from an exporter in 
the United States (from its home office, if it is a branch house), and 
the exporter in the United States deals with the manufacturer of the 
equipment or materials specified. The Chinese buyer places his 
order with the importing house and knows no other party in the 
transaction. He may not even know where the goods are made, 
and with him it is a case of purchasing from the house for delivery 
upon arrival a specified quantity of goods to conform to a certain 
sample or to be of a certain “chop,” or brand. 

Between the buyer, the actual importer, and the import houses 
with which he deals the terms vary with the man. From some 
dealers the import houses will ask a cash deposit with order and the 
balance upon the delivery of goods; from others one to three months’ 
time is given, dependent upon their standing. The credits between 
the native dealers and the import houses are generally decided by 
the comprador, who is held responsible for them in most cases. 

In the case of power-plant equipment, as was noted earlier under 
the discussion of methods of selling such apparatus to central stations, 
the importer gives the Chinese buyer terms extending over a period 
of years. The ordinary importer can not do this, however. Such 
transactions are handled by importers that are branch or subsidiary 
organizations of a manufacturer or a large export house at home, 
with considerable capital. 

As a rule, the German import houses in the Chinese electrical trade 
gave the native dealers more liberal credit terms than did any others. 


CHINA. 


97 


The Japanese are adopting the policies of the Germans in many 
regards and offer a variety of terms, dependent upon the competition 
that they have to meet. Both the Germans and the Japanese depend 
upon the aid of their consuls in collecting overdue accounts. Various 
methods of overawing native dealers and the local Chinese authorities 
are resorted to by the Germans in enforcing claims. 

The financial arrangements between the importer in China and 
the exporter in the United States are, however, those that are of the 
greatest interest from the point of view of this report. In some 
cases an import house buys direct from a manufacturer; in other 
cases it buys from or through an export commission house, and the 
terms granted by a manufacturer are different, as a rule, from those 
of an export house. Where the import house buys from an export 
agent in New York or San Francisco, which in the smaller electrical 
lines is probably the more common practice, the following method 
of payment is common: The import house buys on documentary 
credit, going to its bank in China and arranging that this bank shall, 
through its correspondent in New York, say, buy drafts drawn on 
the import house covering a certain specified shipment made by a 
specified house. The bank agrees to do so, upon deposit with it by 
the import house of 30 to 50 per cent of the amount of the credit. 
It then notifies its correspondent bank in New York to purchase 
drafts under this documentary credit. When the goods are delivered 
for shipment the export house takes to the correspondent bank a 
draft drawn on the import house, to which are attached the ocean 
bill of lading, the insurance policy, etc., and is paid the amount called 
for. The draft is sent to China for collection. It may be drawn 
at sight, or for 30 to 90 days after sight. German houses are said 
to have given 90 to 120 days' time very frequently. When the draft 
arrives in China the import house either pays the bank the amount 
due, less the deposit, receives the documents and obtains delivery 
of the goods, or accepts the draft for payment at a future date. 
Documents against payment (d/p) is the more common method in 
the case of smaller houses, while documents against acceptance (d/a) 
is generally the basis for sales to old, well-known houses. 

While plain documentary credit is acceptable to most American 
export houses, some are asking for confirmed credits, which are 
similar except that there is no recourse to the drawers of the draft. 
This means that the bank asks the importer to deposit a larger per¬ 
centage of the credit than in the former case, and this is hard on the 
smaller houses in that it ties up a larger portion of their capital. 
Not having recourse to the drawers in the event of the importer being 
unable to take up the draft when due, the bank protects itself amply 
in case it becomes necessary for it to sell the shipment itself in order 
to obtain the difference between the amount deposited and the total 
amount called for by the draft. 

When an importer deals direct with a manufacturer, as there is 
some tendency to do recently, he usually does not obtain so good 
terms as when buying through an export house. Manufacturers all 
over the world prefer cash against shipping documents, and Ameri¬ 
can manufacturers are not much more strict in this regard than those 
of other nations, though in other countries there is a closer coopera¬ 
tion between the manufacturer, bank, and exporter than exi.ts in 

70005°—18-7 


98 


ELECTRICAL GOODS. 


the United States, owing to a longer experience in selling goods 
abroad. Electrical goods are often shipped by a manufacturer on 
plain documentary credit, which gives the manufacturer his money 
in New York, but leaves recourse open to him should the draft not 
be taken up at the other end. One prominent manufacturer has 
been selling goods to China on these terms until recently, when con¬ 
firmed letter of credit was made the rule. This gives the seller this 
money in New York without any further liability. 

When a manufacturer ships goods abroad through an export 
house he is paid at New York in the same manner, but in that case 
it is merely a domestic sale of goods made direct to the export house. 
The only differences between such a sale and a shipment for home 
consumption are that the goods may vary a little from standard, 
the packing may be a little different from that employed for rail 
shipment, and the consignment is possibly delivered aboard a 
steamer. 

Some electrical manufacturers selling direct to import houses 
representing them arrange their terms so that payment is due when 

f oods arrive. This is satisfactory except where there is a possi- 
ility of the goods not being up to sample, in which case the import 
house is not protected as it would be if time were given to inspect 
goods before payment is made. 

The feature of American export practice that received the most 
criticism, before fluctuating ocean freight rates made c. i. f. quota¬ 
tions difficult, was the tendency to quote f. o. b. prices even when 
c. i. f. prices were especially requested. American exporters have 
been known to quote prices f. o. b. inland town in the United States, 
and the bids have been rejected because the importers lacked in¬ 
formation on American railway freight rates and were unable to 
figure the cost of the goods landed in China. In a case cited by an 
American consul British quotations had come in c. i. f., as usual, 
while the American figures were f. o. b. the factory. The importer 
was ready to place the order with the British maker but happened 
to mention the case to the consul, who aided him in working out de¬ 
livered costs on American goods. These proved to be lower than 
those of the British firm and the importer changed his decision. 
There is no excuse at any time for quotations f. o. b. factory. The 
present unsteadiness of ocean freight rates puts c. i. f. quotations 
practically out of the question, but prices f. o. b. American port of 
clearance would enable the Chinese importer to figure his costs. The 
c. i. f. quotation, however, should be regarded as temporarily sus¬ 
pended, not superseded. Its use must later be resumed and ex¬ 
tended if European and Japanese competition in China is to be met. 

An allied complaint is that quotations are sometimes not accom¬ 
panied by sufficient information as to method of packing, shipping 
weights, and case dimensions, all of which data are indispensable to 
an importer whose goods have to be.distributed inland in a country 
like China. 

DISPLAY SAMPLES. 

Chinese buyers invariably want to see actual samples, if possible. 
They can not be induced to place orders on the strength of catalogue 
specifications. If they know a “chop,” or brand, by having han¬ 
dled it before, they will order on the basis of that standard brand, 


CHINA. 99 

but even then they want to see a sample, and possibly to have one, 
as a check on what they are ordering. 

German manufacturers have had the reputation of being liberal 
in furnishing samples, and Japanese electrical factories send out small 
samples freely. Some American manufacturers claim, on the other 
hand, that sending out free of charge a complete line of samples in¬ 
volves considerable money, and in the case of a small importing 
house they do not feel justified in doing so. In many supply lines 
this contention of the manufacturer is fair. But importers in China 
have claimed that American manufacturers sometimes bill them for 
samples at retail prices. There should be some common point of 
agreement, and it is believed a scheme can be evolved whereby the 
samples will be billed out on, say, a year’s time at low prices. In 
accessory lines where the total involved is not great, if the orders 
received within that time amounted to a certain agreed sum, the 
importing house could be credited with the cost of the samples as a 
bonus on their sales, or for lesser sales a proportion of the cost of the 
samples could be credited. In lines such as small motors, expensive 
fixtures, telephone equipment, and other goods where a fair number 
of samples would reach a large total, an amortization scheme similar 
to that suggested could be worked out to cover a term of years. 
The manufacturer can protect himself through a long-time docu¬ 
mentary acceptance, possibly, with interest on moneys due. Of 
course, sample lines should be sent out only to reliable houses and 
to those equipped to handle the special class of goods dispatched. 
But American manufacturers must get samples of their goods before 
the Chinese buyers, and it is to their advantage to cooperate with 
their representatives to make samples available. 

COMPLAINTS AGAINST AMERICAN GOODS AND METHODS. 

In seasonal electrical goods, such as fans and electric heating 
apparatus, importers spoke of certain losses incurred through ship¬ 
ments being received late, which caused them considerable trouble 
with their Chinese customers and in some cases refusal on the part 
of the native buyers to receive goods ordered, on the ground that 
they were unable to sell them on account of the lateness of the 
season Part of this trouble at present is unquestionably due to 
the unsettled shipping conditions. 

Claims against American exporters for failure to meet conditions, 
to supply goods exactly according to sample, etc., have sometimes 
received scant attention, according to importers. The exporter has 
taken the stand that if the type of an article has been changed 
somewhat, as happens frequently from year to year in the electrical 
trade, while the goods are otherwise generally the same, he is not 
at fault in not shipping exactly as per sample. On the other hand, 
the importer has to supply a Chinese customer who says that he 
wanted exact duplication of the sample, that his own customers will 
not take the new type, etc. If the variation from sample is not 
marked, no harm is done; but if there is a considerable difference, 
as happens often, the native dealer is right in anticipating trouble 
in disposing of the new r er type when he has been working on the basis 
of the sample. 

One or two American importing houses in China complained that 
manufacturers in the United States would quote them good prices 


100 


ELECTRICAL GOODS. 


when they took up an agency, but as soon as they had the goods 
established on the market would make an arbitrary increase in their 
price lists. The complaints, however, were not very specific and in 
recent cases seemed to check with price increases made necessary 
by labor or material advances in the United States. 

The climatic conditions in China are more severe, from an electrical 
point of view, than they are in the United States, and this has brought 
about numerous complaints of minor troubles with American appa¬ 
ratus and supplies. The most common fault has been leaky insu¬ 
lation when equipment has been subjected to the high humidity 
obtaining in most of the larger Chinese cities. This trouble has 
appeared in makes of small electrical goods that in the United States 
enjoy the highest reputation, and it has been general rather than 
confined to a few pieces of a consignment. 

Complaints made by importers that shocks were received by users 
of the goods have in many cases been practically ignored by manu¬ 
facturers, who seemed to feel their standards unassailable. They 
were selling the same kinds of goods in New York, and seemed to 
resent having somebody in China tell them that their product could 
possibly fall down. They have sometimes come back with the 
statement that if the importer would take care of the goods at 
the other end, or use them right, or instruct the buyers how they 
should be used, no troubles would be experienced. The manufac¬ 
turer seldom turned the complaint over to his testing department 
and had the operating conditions in China reproduced as near as 
possible, to see what effect would be produced. 

It has happened that an importer in China, after having written 
a courteous letter to the manufacturer suggesting possible construc¬ 
tion changes that his experience in the local field has taught him 
will eliminate the troubles, has received a reply thanking him for 
his suggestions, but stating that the firm’s experience in manufac¬ 
turing for 27 years has taught it that its present method of making 
its goods is superior to any other, etc. In general, manufacturers 
having reliable agents in any locality can feel safe in carefully inves¬ 
tigating and considering constructive criticisms. It would seem 
that manufacturers who are scrupulous in that regard in the home 
market are sometimes careless in their attitude toward their foreign 
connections. 


MAKING GOODS TO MEET CHINA’S NEEDS. 

While there will be a small but increasing demand in China for 
the best in all lines of electrical goods, coming’from the wealthy 
Chinese as well as from foreigners living in the country, importers 
state that China, generally speaking, wants apparatus and similar 
large equipment to be of the best, but that in minor devices, sup¬ 
plies, and accessories the cheapest will be favored. 

The smaller American goods are generally better and more expen¬ 
sive than those of German or Japanese make, and British manu¬ 
facturers also produce many articles that are less expensive. The 
Germans have apparently come into this market with about the 
same quality of electrical supplies that they have introduced in 
South America, and the Japanese are making cheap copies of any¬ 
thing of which the purchaser has a sample. American manufacturers 


CHINA. 


101 


have been shipping out standard-finish goods which the importers 
have had to sell in the face of competition from the cheaper goods. 

It is believed that American standard goods should be kept in 
the market; the Chinese dealers appreciate quality when they see 
it and know that the higher cost is justified. However, they sell 
to many out-port customers who know only the standards that have 
been developed by German manufacturers; for this reason, lower- 
priced sockets, switches, attachment plugs, fixtures, etc., similar to 
those on sale in South America, should be submitted to importers 
in China. At the same time there should be no relaxation in the 
attempt to sell standard-quality goods in the market and to try to 
educate the native dealers to the better ultimate values of the 
higher grades of goods. 

REPRESENTATION IN CHINA. 

LOCATION OF AGENCIES. 

Shanghai handles the largest amount of the trade of the world 
with .China, and in particular the commerce in electrical goods of 
all kinds. This port is the headquarters for most of the important 
business houses engaged in foreign commerce with North and Central 
China, and it has port facilities and distribution facilities to take 
care of a great volume of shipping. In addition to its advantages 
as a center for foreign trade, Shanghai is the most thoroughly organ¬ 
ized distribution center in China. It is here that the large Chinese 
dealers make their headquarters, with their strong merchant guilds, 
and maintain close connections with out-port dealers all over China. 
Outside of the trade of Japan, most of the business done in South 
Manchuria is handled through Shanghai. Japanese exporters, in 
view of the port and railway situation there, as well as the geographic 
situation, deal direct with Manchuria. 

It is evident, therefore, that the main representation for the 
Chinese market should be at Shanghai. When the business develops 
a little, branch connections should be established at Tientsin in the 
north, Hankow in the center of the country, and either Canton or 
Hongkong in the south, the latter being the preferable location under 
existing conditions. With the Japanese in control of the shipping 
facilities into and out of the best port in South Manchuria, it is hardly 
worth while for an American company selling electrical goods to 
establish a regular agency in any center there. Some sort of sub¬ 
agency at Mukden could handle all the business open. The Japanese 
are financially in control of most of the important power-using 
industries, and this fact limits the possibilities of development in 
the electrical trade. 

METHODS OF OBTAINING REPRESENTATION. 

German and British manufacturers, more than those of other 
nations, have followed the plan of having subsidiary organizations 
in China. There are several strong houses in China bearing the names 
of the manufacturers themselves, as well as others that are operated 
under different firm names but are strongly backed by manufacturers. 
Such organizations make a very close connection between the manu¬ 
facturer and the foreign market. Through his local branch or 


102 


ELECTRICAL GOODS. 


subsidiary organization, the manufacturer obtains information as to 
the demands of the market, gets comments as to changes in his 
methods of manufacture, shipping, packing, etc., that are desirable 
to meet the wishes of the buyers in China, and learns from unbiased 
sources the symptoms, results, and causes of faults that develop in 
his products. These facts, being placed before the manufacturer by 
his own men, receive more attention than if they were forwarded by 
an import house with which he has only an ordinary selling arrange¬ 
ment. From his close connections abroad, the manufacturer also 
obtains careful and comprehensive data on the foreign competition 
that he is forced to meet, with price and other information that is of 
the greatest value. 

These branch or subsidiary organizations generally have a large, 
well-trained staff, with engineers specializing in various classes of 
equipment, so that the best possible attention can be given to prob¬ 
lems that come up concerning the most efficient application of the 
company’s apparatus. When equipment is installed, the engineers 
are on the watch to see that the work is done properly, or, more com¬ 
monly, they do the work themselves. During the operation of plants 
in which their apparatus is used, the engineers keep in touch with 
conditions and thus not only maintain a check upon the care and 
attention given the plant equipment but keep up a connection that 
aids them in obtaining future business. 

Where representation is had through an import house handling 
mixed lines and not maintaining a large staff, it is evident that this 
service can not be expected, but the larger import houses have a 
fair number of specialists in various lines. An American export and 
import organization that has been established in the last few years 
in the Orient has a complete staff of such experts, who cover all of 
China and adjoining territory, but the practice is not general. 

Where the manufacturer and the importing house are closely 
connected financially, there is better opportunity to work out credit 
arrangements with central stations, such as were made by the Ger¬ 
mans and later by the British. This has already been discussed in 
connection with terms and credits. There are at present only two 
companies representing American electrical interests that are adopt¬ 
ing this practice and probably only one or two others that are able 
to do so. 

Instead of establishing such extensive connections overseas as are 
involved in branch houses or subsidiary organizations, some foreign 
manufacturers and one or two American works have sent out a 
single salesman to cover the field, opening an office in Shanghai and 
operating as he would in a branch office in America. This plan works 
out well in large equipment lines where there is a sufficient volume 
of business. It works out especially well in telephone and telegraph 
equipment. The bulk of these sales will be made more and more 
to the Department of Communications of the Chinese Government, 
since it is a policy of the department to obtain and retain control 
of telephone systems, just as it is now in control of telegraph com¬ 
munication in the country. 

An agency in the hands of an importing house is the more common 
method of selling American electrical goods in China at present and 
will probably continue to be the means for the smaller electrical 


CHINA. 103 

manufacturers, except where a number of the latter pool their 
interests and organize a foreign selling company. 

As has been noted, the large import nouses maintain staffs on which 
there are experienced men or specialists in certain classes of goods. 
Such companies are able to provide competent representation and 
are also in a position to carry stocks when they see that it is to their 
advantage. The large American importing houses, as a rule, have 
offices in one of the larger cities in the United States and are able to 
keep in close touch with the manufacturer, and this leads to a 
cooperation that is of mutual benefit. 

In the case of the smaller import houses handling American 
electrical goods and of larger houses carrying a few special electrical 
lines, the firms generally have some one on the staff with a little 
knowledge of the technical side of the business, but not enough to 
represent properly a manufacturer whose product requires that the 
seller be able to advise the buyer as to his needs. For what may be 
termed staple lines, however, houses doing a general import business 
can give proper representation. Importing houses in China generally 
engage in export business as well and thus have wider connections 
in the market than branch houses of manufacturers. This works 
out to the best advantage, also, in nontechnical lines and it is in this 
field that the general import and export houses can get the best 
results. 

When a manufacturer has his own branch abroad, he finances 
sales through to the native dealer. When he sells to an importing 
house he is accustomed to get his money f. o. b. New York from 
the export agent representing the importer, or from a bank with 
which the importer has made arrangements for the purchase of 
drafts against him. This phase of the matter is of special interest 
to manufacturers with limited capital. 

A variation of mere representation by an import house in China 
is to place a factory representative in the field to work with such 
a house, thus insuring proper handling of the goods in the market 
and supervision of installation work. This provides the technical 
knowledge that is lacking when electrical equipment is taken care 
of by members of the staff trying to cover diverse goods. 

COOPERATION AMONG AMERICAN HOUSES. 

A foreign salesman who has been in the United States commented 
upon the good fellowship existing there among American salesmen 
of competing lines. He was particularly struck by their getting 
together at the hotel in the evening after having fought one another 
in trying to land a big contract during the day, and remarked that 
other nationalities do not fraternize in that way. 

The writer, in visiting foreign territory, was struck by another 
sort of condition existing there. Representatives of American 
electrical manufacturers may have shown good fellowship at the 
hotel in the evening, but there was certainly no such thing as the 
Americans “pulling together” against foreign competition. Indeed 
it seemed that if one American house “lost out,” it did not mind so 
much if only an American competitor did not land the business. 
William S. Culbertson, of the United States Tariff Commission, in 


104 


ELECTRICAL GOODS. 


the Nation’s Business for December, 1917, pictures the way in which 
foreign business men view their over-sea trade: 

Before the war, cooperation was common among the financial, transportation, and 
producing interests in such countries as Germany, Italy, Great Britain, France, 
Belgium, and Japan. Government aid and cooperation were also common. Business 
was viewed no 1 : so much from the point of view of the individual as from that of tin 
nation. Germans, for example, were not found competing with Germans in the 
Argentine, nor English with English, nor Japanese with Japanese. The business 
men of each country settled their differences among themselves and moved into tin 
foreign market unitedly. 

In their home markets also they cooperated in marketing their goods and in meeting 
competition with foreigners. The close bond which existed prior to the war between 
the producing, financial, and transportation interests of such countries as Germany 
and Great Britain made those countries so powerful in selling their goods abroad that 
it was not possible for the small American business man to make any headway 
against them. 

Complete cooperation among all the interests involved in carrying 
on foreign trade is greatly to be desired and the tendency appears 
to be in this direction. 

THE NATIONALITY FACTOR IN AGENCIES. 

The nations of the world that have made the greatest progress in 
foreign commerce have been those whose manufacturers developed 
men or organizations of their own nationality to represent them in 
foreign markets. For hundreds of years the British have been 
trading in foreign markets with their houses and their banks estab¬ 
lished at every strategic port. Germany, when it first began to sell 
overseas, made use of British houses that were already in the field. 
While its trade was growing Germany was preparing to establish its 
own houses and banks, and soon German organizations were handling 
its goods. Japan, with the growth of the electrical and other trade 
since the war, has established houses of its own in new markets opened 
on account of the commercial disruption resultant upon the European 
conflict. Outside of a few of the largest American corporations, 
however, there has been small development along these lines in the 
United States. 

American goods should be sold abroad by Americans. In China 
there is a special incentive to confine American representation to 
American houses where possible. The Chinese, as a people and as a 
nation, have a high regard for the United States, and while sentiment 
will not sell goods, it determines who gets the business when things 
are equal or nearly so. An American house can take advantage of 
this good feeling as no foreign house selling the same goods can. 

The American import houses operating in China have more or less 
of a connection in the United States. In many instances their head 
office is there; in other cases they have permanent export agents to 
care for the American end of their trade, which probably includes 
export business from China to the United States. An American house 
is accustomed to American business routine and American sales 
methods and can best take advantage of cooperation from the manu¬ 
facturer. With an import house of our own nationality acting as 
representative, it is a case of another similar link in the trade connec¬ 
tion between the United States and China. There will be more of a 
spirit of loyalty and less likelihood of confidential trade information 
falling into the hands of competitors. 


CHINA. 


105 


Capital will be needed to help China develop its resources and trans¬ 
portation facilities, and trade follows capital. If American houses will 
furnish some capital in the electrical trade in the way of long-time 
credits to central stations, street-railway systems, etc., they will 
probably hold the bulk of future business of such companies. In 
extending such terms to Chinese companies, the local house will 
probably need the aid of the manufacturer that it represents and the 
cooperation of American banks. A foreign house acting as represen¬ 
tative for an American manufacturer will not obtain the cooperation 
that would be given to an American house, and it will not be given the 
same accommodation at either a foreign or an American bank as if it 
represented manufacturers of its own nationality. 

There are other reasons why American manufacturers should, 
whenever possible, be represented by American houses. There is a 
knowledge of home market conditions and of home developments in 
electrical devices, etc., on the part of an American house which 
enables it to understand the merits and possibilities of such lines 
abroad and to appreciate whether the goods can be sold to advantage 
in the Chinese market. The electrical standards in the United States 
are different from those of foreign countries and education of the trade 
to the use of American standards must be one of the policies of 
the agents. A foreign house will not have the intimate knowledge of 
American practice that will enable it properly to show and prove the 
inherent advantages in American methods. Moreover, if the foreign 
house has only a few American lines in connection with a general 
business in foreign electrical goods, it will hardly have an incentive to 
educate the trade to American standards. 

It is not the intention, however, to suggest that foreign import 
houses should never be employed as agencies in China. Where ade¬ 
quate American representation can not be had it is only sound busi¬ 
ness to place the goods in the hands of any house that can arrange to 
push them. The contention of the writer is that the practice of 
American manufacturers should be to make every effort to obtain 
American representation if they can. Unfortunately there are hardly 
enough strong American houses in the China trade to give representa¬ 
tion for all the electrical manufacturers who wish to sell goods in the 
market. On the other hand, for the trade that is being done at pres¬ 
ent there are almost enough companies in the field. The small manu¬ 
facturer is therefore confronted with an inability to obtain an agent, 
because* the existing houses are already representing some similar line. 
As this market expands—and it is doing so rapidly—it is evident some 
plan should be made looking toward the establishment of competent 
representation for those electrical manufacturers whose business will 
not warrant expensive foreign connections. 

FUTURE AMERICAN REPRESENTATION IN CHINA. 

The larger electrical manufacturers of the United States are now 
being well established in the China trade, and some of the specialty 
manufacturers have adequate representation for years to come. But 
the greater number of American works operating on moderate capital 
have no effective means of entering this market. Individually some 
of them can not afford to maintain offices in China even if there 
were a large volume of business open at the present time. Others 


106 


ELECTRICAL GOODS. 


could do so alone if the market were developed but can not by them¬ 
selves carry the burden during the years that will pass before the 
electrical trade in China grows to larger proportions. On the other 
hand, American manufacturers should have their goods pushed in 
the market during the development period and should have a hand 
in crystalizing standards and in doing propaganda work to hurry 
along the development. Individually they can not afford to enter 
the small market of the present time. Cooperation among the manu¬ 
facturers is necessary. 

In other countries, especially Germany, this fact has been appre¬ 
ciated for some years. In England in 1914 a large corporation was 
organized to better British representation in the Orient. This 
organization is known as Representation for British Manufacturers 
(Ltd.) and has large offices at Shanghai and Hankow. This corpora¬ 
tion represents manufacturers with a broad variety of products 
rather than makers of a single line. In Germany the tendency has 
been probably more toward cooperation among manufacturers of 
similar goods. ... 

A method of cooperating to enter the China trade is for a group of 
manufacturers, who among themselves produce a complete electrical 
line, with allied equipment such as prime movers, etc., to form a 
company for foreign trade and open offices at Shanghai to start, 
carrying a modest stock there. At the beginning probably two men 
with office help are all that will be needed, one of these men being 
technically trained in addition to having commercial experience, 
and the other having sales experience. Before being sent out they 
should familiarize themselves with the works and the product 
of each member of the group and should know the business routine 
of foreign trade. The carrying of stock would be an important 
feature of such a combination. By this means entry can be had 
to the China field more quickly than if goods are to be shipped 
out on order only. The brands can be established on the market 
through prompt service as well as through merit. Japanese electrical 
goods have been sold in China in many cases because of the ex-godown 
(warehouse) deliveries that have been made. 

In lieu of such a group of electrical and allied manufacturers 
organizing their own export agency, it is possible that arrangements 
can be made with some large export house in the United States, not 
now operating in the China market, to open an office or offices in 
China and there give exclusive representation to the members of 
such an alliance. The drawback is that the manufacturers would 
not have the intimate contact with the market that they will have 
where certain of them act on the board of directors of their own for¬ 
eign selling company, and also that possibly the export company 
representing them in China may act in other parts of the world as 
agent for some of their home competitors, which might lead to 
difficulties. 

Whatever manner of plan is worked out, the manufacturers should 
realize that they must cooperate to obtain results in an over-sea 
selling campaign. Also they must realize that they can not sell 
their goods abroad without some expense, any more than they can 
at home. 

One of the handicaps in the development of foreign trade from the 
United States is the scarcity of men who have the necessary knowl- 


CHIITA. 


107 


edge of export business. Many may have a superficial knowledge 
but few are experienced in handling over-sea commerce on both sides 
of the ocean. There is a tendency now to prepare young men thor¬ 
oughly for service abroad; the competition that is arising from the 
war is going to call for well-equipped salesmen. 

PUBLICITY FOR ELECTRICAL GOODS. 

At the present stage of electrical development in China, general 
advertising to create a demand among the masses for any specific 
electrical device or equipment is not warranted. To reach central- 
station consumers, manufacturers, through their representatives, 
put out among native dealers various kinds of small posters, translu¬ 
cent window signs, display racks, etc. The wording of such matter is 
often in English, but the main point to be observed is that some 
easily distinguished trade-mark, design, or slogan that will immedi¬ 
ately identify the goods shall be the principal feature of the adver¬ 
tising. The Chinese learn to identify a brand by its “ chop,” or trade¬ 
mark, mainly, and this must be kept constantly before them and made 
the central feature in any publicity that is attempted. Pictures and 
designs are the only international language. 

Import houses advertise in local newspapers published by American 
or English companies in the larger foreign communities and are also 
said to take some space in native papers. 

To reach the engineers in the Orient, probably one of the most 
effective means is the Far Eastern Review, a widely circulated 
technical journal long published in Shanghai by Americans. This 
journal contains engineering matter that should be of great value to 
American engineers who are at the manufacturers' end of foreign 
trade in the Far East. Millard's Review, published in Shanghai, 
discusses commercial and political events in China and Japan. It 
reaches many foreigners and some of the educated Chinese. It is an 
American publication and carries general advertising. 

Besides the direct advertising by individuals, advertising along 
national lines has been noticed in China of late. British organiza¬ 
tions have been circulating papers and magazines devoted to British 
goods entirely and constantly commenting upon the superiorities of 
British goods. In the engineering field a publication known as 
Eastern Engineering, a supplement to the London and China Press, 
was noted, which in its issue for March 28, 1917, contained the fol¬ 
lowing editorial article: 

British machinery has had a good name all over the world from the very earliest 
times when machinery began to be used; and the reasons are not far to seek, and they 
are such as should commend themselves very specially to users of machinery in new 
countries like China. China is, of course, the oldest civilized country in the world; 
its civilization dates back to long before our Christian era; but from the engineer’s 
point of view, it is quite a new country, since it has only recently begun to use ma¬ 
chinery. Where machinery has to be used, under conditions such as those ruling in 
China, where transport is difficult and always takes long, certain requisites rule. In 
the first place, that machine is best that will go on doing its work day in day out, week 
in week out, year in year out, with the smallest amount of attention, and that is one 
of the characteristics of the best British machinery. Further, that machine is best 
in such a country as China which, when the time comes for repair or overhauling, can 
be put in such a form, at not too great an expense and in not too long a time, that it 
will go on working continuously for a considerable time longer; that is also one of the 
characteristics of British machinery. When a machine has been transported, say, 
1 000 miles from one of the treaty ports, and has been installed to do certain work, 


108 


ELECTRICAL GOODS. 


what is required of it is that it shall go on doing its work continuously without the 
attendance of workmen from the makers, and that its working shall be so simple and 
any repairs required so easily carried out, that the natives shall be complete masters 
of the machine and can keep it going continuously. Many an engineer in charge of 
a machine in some out-of-the-way spot in one of the numerous parts of the world to 
which British engineers penetrate, miles away from everywhere, from repairing shop3, 
etc., has heartily blest the designer and the manufacturer of the machine he is looking 
after, when its arrangements are so simple that he can do any repairs himself and 
when its parts have been so strong that they will stand the rough and tumble of usage 
in out-of-the-way places. This again is a characteristic of British machinery, and it 
applies very much more forcibly to apparatus in native hands than to those in the 
hands of British engineers. 

American machinery is constructed on totally opposite lines to that of British ma¬ 
chinery. During the last 30 years American machinery manufacturers and British 
manufacturers have taken a good many leaves out of each other’s books; but the main 
characteristics of the* two remain. The idea in the mind of the designer of British 
machinery has been, as mentioned in the last note, to construct his machine so that 
it will go on forever; there are machines and pumps still running that have been in 
use for over 100 years. The American idea is that something will come along very 
shortly in the course of a few years that will supersede the machine he is turning out 
at the moment; and so he only constructs his machine to last for a few years. He 
puts the smallest amount of material into them, puts them together very cleverly, 
and has all sorts of dodgy methods of meeting the troubles that arise under such con¬ 
ditions of manufacture; but once the machine begins to fail it is absolutely hopeless; 
there is no possibility of repairing. The shortage of labor in America has obliged 
manufacturers to develop their inventive faculties to the very fullest extent, with 
the result that they have produced a race of inventors such as the world has not hith¬ 
erto seen; but side by side with this wonderful skill in invention, in the production of 
tools to turn out articles quickly, has gone the idea mentioned above, that the ma¬ 
chine should be constructed only to last for a few years. It has almost been a raison 
d’etre with American manufacturers that the machines they turned out should not 
last very long; if they lasted as long as British machines there would be no market 
for the machines coming after them. In such a country as China, however, where 
the machine will be of the greatest service, at the greatest distance from the treaty 
ports, because the greatest needs will be there, machines that are made to last only a 
few years are a hopeless proposition; Chinamen would only just have got comfortably 
into the way of running that machine before it gave out. It will be remembered that 
Chinamen, though they are very clever in their own way, are very conservative, and 
sometimes take much longer than Anglo-Saxons would to master machines in the 
manner that would be necessary when running a machine, say, 1,000 miles inland. 

Publicity of this type, if properly handled, is no doubt of value 
and should be a matter for national organizations of electrical manu¬ 
facturers. 

PACKING AMERICAN ELECTRICAL GOODS FOR CHINA. 

Only a few complaints were made of the way in which American 
electrical goods are packed. In most cases importers had little 
trouble with electrical goods, and when they did the goods in some 
instances were well cased but injudiciously arranged internally. 

One instance noted was that of a marble power panel for* a tele¬ 
phone-exchange installation. This had been shipped out in the 
following manner: The panel (which had two large-diameter holes at 
the top for flush-type instrument mounting) was laid in a case of 
about its length but slightly wider, and was held at top and bottom 
by wooden cleats on the back and front sides. Excelsior was well 
rammed all about the panel and the tendency for the panel to slip 
sideways in the cleats was taken care of. The case, which was of 
inch lumber, was then well nailed, after which the whole case was 
itself packed in excelsior, well rammed apparently, in another case. 
The second case was well made and nailed and also strapped, as the 
writer recalls. The case was received apparently in good order, no 


CHINA. 


109 


external damage being incurred; but when the inner case was opened 
it was discovered that the panel was badly cracked across at the 
section where the instrument mounting came. The case had evi¬ 
dently been dropped sharply when lowered into the ship’s hold or 
when discharging to the dock, or it may even have been roughly 
pushed over from end to side during its railway journey. The 
panel was more or less rigidly held by the cleats at the ends, while 
the excelsior under the middle portion would give. Like a beam 
supported at each end, the panel had little strength to withstand the 
shock of being dropped or tipped over, especially with the weakened 
cross section, where the instruments were to go. This was a case of 
injudicious rather than careless packing. 

Another instance of injudicious packing was putting battery jars 
and storage-battery plates in the same case, with a supposedly solid 
partition between the two. Rough handling had loosened the par¬ 
tition and some of the jars were broken. Separate packing of the 
two will remedy further troubles. This complaint was made in a 
Manchurian city and the cases had been shipped over the Japanese 
railway and probably on Japanese steamers. 

Importers in three instances made complaints of poor packing. 
One shipment consisted of some fixture glassware and was made by 
a company that probably has exported few goods. The cases were 
made up with three-fourth-inch lumber at the ends and one-fourth- 
mch stuff for the balance; the lumber was very poor and knotty and 
there was no tying or strapping of any kind. The cases had crushed 
in, apparently, when thrown about. They were small and easily 
handled. For these cases three-fourths-inch lumber could well have 
been used all around, and the boxes should have been strapped. 

An American firm ships indirect-lighting bowls in barrels, three 
bowls to a barrel. The shipments come through with no apparent 
external damage, but breakage of the bowls is common, according to 
the importer. He has suggested packing each bowl in excelsior in an 
individual paper carton and then packing these in excelsior in a larger 
case, as the bowls themselves are now packed. 

Little American line hardware was seen in China, but a complaint 
was registered against the packing of one company making such 
goods. This was in regard to a shipment of steel insulator pins, 
which left the factory in light kegs and arrived in China minus some 
of the kegs, with many pins delivered loose.. The proper method of 
packing such goods for shipment abroad is to place them in sound 
wooden boxes of three-fourths-inch or 1-inch lumber, strapped, 
holding 100 to 300, depending upon the size of the pins or other 
similar fittings. In that manner the shipments would arrive in good 
shape and would be easily arranged in stock. The boxes could also 
be lined with tar paper to good advantage. 

As previously stated, however, the packing of electrical goods was 
not generally complained of by importers, and the cases cited have 
been noted not so much in criticism as in aid of a still better under¬ 
standing of what kinds of packing should be avoided. Suggestions 
made by various importers with whom the matter was discussed are 
that American manufacturers should do a little home experimentation 
with the packing of their goods. They should make up differently 
arranged cases and then subject them to rough throwing, rolling, and 
dropping, to reproduce so far as possible the handling that a case will 


110 


ELECTRICAL GOODS. 


get as it is hoisted from a dock, squeezed in among a number of 
other cases of various sizes in a rope sling, and after the load is cen¬ 
tered over the ship’s hatch, dropped into the hold with a thud. 
Much can be learned from a few inexpensive trials at the factory, 
and then the efficiency of the packing of actual shipments can be 
checked up once in a while by requesting the importer to make careful 
note of the condition of the cases when delivered and possibly to 
photograph a typical case. 

For many classes of electrical goods, measurement is the basis of 
tonnage in determining the freight on a case, so that a little additional 
weight makes no difference. The matter of freight should therefore 
not deter manufacturers from using heavy lumber in their cases, 
well braced and nailed, and then strapped with a weight of metal that 
is in accordance with the case dimensions and the lumber used. 
Cases may well be tar-paper lined and possibly tin lined in some 
instances. The best plan to follow is to keep in touch with the im¬ 
porter and try to meet all reasonable suggestions that he has to offer. 
The destination of goods after reaching a main port is a factor in 
determining the size of cases, as interior-transportation limitations 
must be anticipated. 

Many small goods are now being sent out to Shanghai by parcel 
post, and some little trouble has been experienced from careless 
packing. An inspection of incoming shipments revealed the fact 
that some packages, among them one or two sent out by large 
department stores in the United States, were prepared for shipment 
with about the same care as if they were to be delivered locally by 
messenger. In other cases it was evident that the shipper had tried 
to save about 6 cents in postage by eliminating weight in packing 
and had brought about a loss of many times that amount. Packages 
made up in a manner suitable only for local delivery, moreover, can 
not be protected when going out of the city by pasting labels on them 
reading “ Handle with care.” People sometimes fail to realize that 
the packages are all placed in mail bags and even if the bags are most 
carefully handled some of the packages must be at the bottom of a 
pile and bound to receive the weight of those above. 


JAPAN. 

INTRODUCTION. 

Japan has shown a wonderful electrical growth in the last 10 or 15 
years. Central-station systems have been established in great 
numbers and service has been extended to all parts of the country. 
Statistics show that there were 103 central stations in 1906, whereas 
in July, 1917, the number was officially given as 658. The devel¬ 
opment is greater than the figures indicate, inasmuch as many of the 
stations are hydroelectric and supply a considerable number of cities 
and villages. 

Japan, therefore, has been for some years a large consumer of 
electrical goods. A few years ago these were imported, but the 
strong home market that was opened up brought about a develop¬ 
ment in the manufacture of all kinds of electrical apparatus, equip¬ 
ment, supplies, and accessories, and now Japan is changing * from 
the status of a customer of the United States in certain of these 
lines to that of a competitor. The 1917 embargo on steel shipments 
from the United States has made it impossible for Japanese electrical 
manufacturers to obtain needed material and has resulted in the 
increased importation of American motors, which will laise current 
statistics artificially; but in general Japan in the future will buy 
electrical goods from abroad only in special lines. 

The growth of electrical manufacturing in Japan is best shown by 
data taken from trade returns of that country. In the item of 
insulated electrical wire, import records show that in 1903 Japan 
bought $169,731 worth from abroad; in 1908, $723,426 worth; and in 
1912, $2,693,917 worth. This is the maximum amount of these 
materials for any one-year period; in 1913 the total imported dropped 
to $1,005,553 and in 1914 to $221,839, while in 1916 only $11,548 
worth of this class of material was imported. Even allowing for an 
appreciable decrease in demand, Japan in 1913 was furnishing a 
good part of its home market, and at the same time records show 
that manufacturers exported to the Philippine Islands, Kwantung 
Leased Territory, China, and Hongkong $125,697 worth of insulated 
wire. During the year 1916, when Japan bought abroad only 
$11,548 worth of insulated wire, it exported $562,816 worth to the 
countries named and to Great Britain, British India, the Straits 
Settlements, Asiatic Kussia, Siam, Australia, New Zealand, and the 
Dutch East Indies, while at the same time supplying a much en¬ 
larged home market due to the great industrial boom in Japan 
since the war began. 

In electrical machinery the conditions are much the same, the 
imports having been as follows: In 1903, $556,821; in 1908, $1,860,- 
588; in 1911, $2,855,603; and in 1916 only $416,927. In the lines 
classified in the trade statistics as “ electric machinery and parts 
thereof, and accessories/’ Japan sold abroad to about the same 
countries named, with one or two in South' America in addition, 
$291,037 worth in 1913 and $723,461 worth in 1916. 


Ill 


112' 


ELECTRICAL GOODS. 


It is evident, therefore, that there is at least no growing market 
in Japan for American electrical goods. Even with all duty re¬ 
moved, it is doubtful whether American manufacturers could com¬ 
pete with Japanese manufacturers employing labor at 25 to 60 cents 
per day, with large local supplies of copper available. In lines 
where American special machinery can be utilized, competition 
perhaps would be possible, but under existing conditions American 
manufacturers can not hope to furnish anything that is made in 
fair quality by Japanese plants. A few lines, such as engines, 
meters, and large-capacity apparatus, are still open, with the addi¬ 
tion of a limited market for articles used by foreigners mainly, 
for which the Japanese home market has not warranted the manufac¬ 
ture in that country. 

GENERAL INFORMATION ON JAPAN. 

AREA AND POPULATION. 

Japan proper consists of four large islands and numerous smaller 
ones lying between longitude 129° and 146° east and extending 
from about latitude 30° to 46° north, with small island groups out¬ 
side of these confines. The area of Japan proper is about 147,700 
square miles—less than that of the State of California. Honshu, the 
main island of the group, has an area of about 86,771 square miles, 
or approximately 59 per cent of the total area of the country, being 
about the size of Great Britain, or more than the States of Maine, 
New York, and Connecticut combined. Hokkaido, to the north of 
the main island, has an area of 30,274 square miles: Kiushiu (15,587 
square miles), the third island, has about the area of the States of 
Vermont, Connecticut, and Delaware; and Shikoku (7,031 square 
miles), the smallest of the four main islands, is equal in area to Delaware 
and Connecticut combined. 

In addition to Japan proper, the Empire includes the island of 
Taiwan (Formosa), to the south; the southern part of the island of 
Sakhalin, obtained from Russia as indemnity after the Russo-Jap¬ 
anese War; various other groups of islands lying near the mother 
country; and the peninsula of Chosen (Korea). This last was a 
separate kingdom until 1910; and, owing to treaties made with 
foreign powers while it was still a separate country, it is open to 
foreign trade with less duty restriction than is Japan proper. Be¬ 
cause of this fact and of developments that took place prior to 1910, 
separate brief notes have been prepared for Chosen. 

The islands of the Empire of Japan stretch for a distance of about 
2,100 miles north and south, but the country at its widest parts has 
a breadth of only about 200 miles 

The population of Japan proper is about 56,000,000, and that of 
other parts of the Empire about 20,000,000 more. In discussing the 
population of the country, the Official Guide Book, issued by the 
Japanese Imperial Railways, states, “ Since 1872 (fifth year of Meiji), 
when there were 33,111,000 people, Japan proper has gained in popu¬ 
lation by 52 per cent; i. e., there has been in these 38 years an increase 
of about 17,000,000, the average rate of annual increase being 14 per 
1,000. Within recent years there has been an annual increase of 
650,000 to 770,000 (the ratio being 13.4 to 15.7 per 1,000). If this 


JAPAN. 


113 


ratio remains unchanged, the present population will be doubled in 
70 years.” The writer's observations in Japan confirmed him in the 
belief that the above ratio is at least not diminishing. In density 
of population (379 persons per square mile) Japan is exceeded only 
by a few countries in the wmrld. The density of population varies 
considerably, owing to the physical characteristics of the country and 
to the severe climate in places. The small area open to agriculture 
and the dense population have forced Japan into industrial activity 
and also into attempts to expand abroad. 

PHYSICAL AND CLIMATIC CONDITIONS. 

The islands of Japan are mountainous, and it is said that only about 
one-sixth of the area is open to cultivation. The mountain chains 
extend throughout the country, generally from north to south, and 
some of the peaks rise to an elevation of 10,000 to 12,000 feet, Mount 
Fuji being 12,395 feet high. There are several active volcanoes in Japan 
and earthquakes are common, records showing that on an average 
as many as 120 shocks a year are registered by observatory instru¬ 
ments in the Tokyo district. Many of these shocks are so slight as 
to be hardly noticeable, but at times severe disturbances occur. 
From the topography of Japan it is evident that there can be no long 
rivers, but that the streams will be rapid and of moderate volume. 
Thus there are many high-head water-power sites in Japan, which, 
with the high altitudes of the interior and the good rainfall conditions, 
maintain a fairly steady flow. The rivers of Japan can not be said 
to be navigable, only small steam launches being able to operate even 
on the lower stretches of the largest streams. The rivers do, however, 
lend themselves well to the irrigation and flooding of fields that are 
necessary in raising rice, which, with fish, is the staple food of the 
people of Japan. There are a number of large lakes in the mountains 
that are of great value in connection with hydroelectric developments. 

The climate of Japan proper is hot and humid in the summer and 
cold and damp in the winter. The rainfall is heaviest in the south¬ 
western part of the island group, being given as 85.5 inches at one 
place in Kiushiu Island, whereas in Hokkaido it was 28.8 inches at 
one station. For various stations the average figures for a long term 
of years are as follows: Osaka, 1,377 millimeters (54.21 inches); 
Nagasaki, 1,884 millimeters (74.17 inches); Tokyo, 1,500 millimeters 
(59.05 inches); Hakodate, 1,142 millimeters (44.96 inches); Mawa, 
2,152 millimeters (84.72 inches); Niigata, 1,793 millimeters (70.59 
inches). The heavy, well-distributed rainfall and the high humidity, 
which reduces evaporation, enable Japan to secure the most possible 
from its water powers. Much snow falls in the north of the group 
and in the mountains, but there is not a great deal in the south¬ 
western part. 

LIVING CONDITIONS AND EMIGRATION. 

The average laborer and artisan earns more in Japan than in China, 
but wages and salaries still are low and the mass of the people are 
forced to live very frugally. Homes are small and plain, being built 
up of pole or bamboo framework, with bamboo split into strips and 
applied to the framework much like lath, only both vertically and 

70005°—18 - 8 



114 


ELECTRICAL GOODS. 


horizontally, making a sort of latticework, on which mud mixed with 
rice straw is petered. The roofs are usually tile in the cities but are 
thatch in the country. Floors in most cases are of wood for hallways, 
while in the rooms squares of thick matting are laid. Doors are made 
to slide horizontally and the upper half is generally “ glazed ” with 
thin translucent paper, the framework of the door being made in the 
form of a window sash with small square panes. Owing to the type 
of construction, which is a development of the frequent earthquakes 
that occur, the Japanese house is not very warm in winter, especially 
as the means of heating are primitive. 

Owing to the economic struggle among a congested people, to the 
limited opportunities at home, and in large part to the desire on the 
part of the ruling class for colonies abroad as an aid toward com¬ 
mercial expansion, Japan some years ago began to organize emigra¬ 
tion in groups. This colonization has been carried on for years. As 
tar back as 1903, 1,100 emigrants went to Peru in one party. Here 
they have their own Buddhist temple and their own school. This 
case is typical, it is said. 

Of late more persistent efforts have been made to systematize this 
work of colonization, and its purposes have been more frankly stated. 
The Japan Advertiser of Tokyo (an American-controlled daily news¬ 
paper) had the following article in its issue of October 13,1917, under 
the heading “Emigration Japan’s Part in Future Economic War”: 

Mr. Ryo Mizuno, managing director of the South American Emigration Co., says 
that it is certain that all the belligerent nations in Europe will launch gigantic plans 
for the economic war as soon as the war is over. Mr. Mizuno said that Japan also must 
try to make strenuous efforts in this economic war, which is to be more vigorously 
waged than the present war of iron and blood. Japan’s area is small; nevertheless 
her population is increasing enormously each year. Therefore it is exceedingly im¬ 
portant for emigration to take place to other nations. It is a good sign that nearly all 
of the emigration firms in this country, at the suggestion of the Government, have been 
amalgamated into one strong corporation with a combined capital of 10,000,000 yen. 
Now that almost all firms have been amalgamated, more emigrants will be sent to 
South America, the South Pacific Islands, and to foreign countries. It will be easier 
to send emigrants, for the new corporation is strongly backed by the Nippon Yusen 
Kaisha and the Osaka Shosen Kaisha. 

PRINCIPAL BUSINESS CENTERS. 

Tokyo and Osaka are the centers of the two large industrial dis¬ 
tricts of Japan, and with Kobe and Yokohama, the principal ports 
of shipment for goods made in these districts, comprise the most im¬ 
portant business centers of Japan. Kyoto and Nagoya are also 
commercially important. 

Tokyo is the capital of the Japanese Empire and the largest city, 
having a population said to be about 2,000,000. While Tokyo is 
located on an arm of the sea, the same bay on which Yokohama is 
situated, the shallowness of the water makes it impossible for steamers 
to come up to the city. Shipments abroad, therefore, go from Yoko¬ 
hama, and that city is the entrepbt for goods and materials received 
from overseas. Cargo between Yokohama and Tokyo is handled 
both by junks and by rail. 

In Tokyo and its suburbs there are many factories, and in addition, 
there is much household and small-shop industry. In the district 
are located large incandescent-lamp works, apparatus plants, and 


JAPAN. 


115 


telephone-equipment works, in addition to a number of important 
silk, cotton, and woolen mills, hemp works, and other plants. In 
Tokyo are located also some of the strongest schools of Japan, the 
Imperial University being one of the most important in the country 
for engineering work. 

Tokyo has probably the most modern business buildings in all 
Japan and in certain quarters takes on a foreign aspect. On the 
whole the streets are fairly wide and straight, except in the older 
districts, where they are both crooked and narrow. The city is 
served by an excellent tramway system and has good electric-lighting 
service, three distribution systems covering the city thoroughly. 
Tokyo has good rail connections in all directions, and in addition an 
electric railway to Yokohama (18 miles) with frequent service. 

For firms representing foreign manufacturers Tokyo is probably 
the best city in which to establish a main office, and many American 
houses that for years have been in Yokohama, the port city, have 
transferred their headquarters to Tokyo. 

Yokohama, 18 miles distant from Tokyo, has been until recent 
years the chief port of Japan, and is still the main port of call for 
vessels combining passenger and freight service from the United 
States to the Orient. From a small fishing village in 1859 Yokohama 
has grown to a city of about 500,000 people, of whom about 6,000 are 
Chinese and 3,500 other foreigners. While Yokohama is primarily a 

I )ort, there is considerable manufacturing in and about the city, the 
at ter along the railway to Tokyo. One of the largest insula ted-wire 
works in Japan is at Yokohama, and near-by, along the railway, is the 
largest lamp works in Japan. There are several other plants engaged 
in the manufacture of electrical goods in a small way. Shipbuilding 
and cotton manufacturing are probably the most important industries 
within the Yokohama district. 

As the first port opened in Japan, Yokohama has been the head¬ 
quarters of import houses for many years and is still important in this 
way, though of late the representatives of foreign firms are more and 
more transferring their main offices to Tokyo. 

Along the harbor of Yokohama is the usual Bund of the Orient, 
and back from the shore are a few business streets. Through this 
district is a sort of foreign quarter, where foreigners were permitted 
to lease land, and here the shops and offices of foreigners are 
located. To the left as one enters the harbor a hill rises, and it is 
there that most of the foreign residents have erected residences, the 
section being known as The Bluff. Away from the old foreign section 
the streets are typically Japanese, though they are wider and some¬ 
what straighter than usual. 

Osaka, the second city of the country in population, is often 
termed the “Pittsburgh of Japan.” Here are centered hundreds of 
manufacturing enterprises and the city claims to be the greatest 
industrial center of the Orient. The city has a population of about 
1,500,000 people, of whom only about 100 are foreigners, not includ¬ 
ing Chinese. It is the least modern of the principal commercial 
centers of Japan, the buildings and the streets giving little indica¬ 
tion of foreign influence. In 1909 Osaka had 6,511 factories, with a 
total number of employees of only 69,926, so that most of the estab¬ 
lishments were not much more than household industries. Probably 


116 


ELECTRICAL GOODS. 


the most important industry is cotton spinning and weaving. In 
Osaka are located many electrical factories, such as lamp factories, 
insulated-wire plants, works making sockets, rosettes, switches, 
etc., and factories turning out apparatus. 

As a port for transoceanic trade, Osaka is not very important, 
since Kobe, 20 miles away, is the entrepot for goods brought into 
south Japan and the shipping point for Japanese products for a 
considerable radius about that point. However, much interisland 
traffic is carried on from Osaka. 

Kobe, with a population of about 450,000 people, has become in 
recent years the greatest port of Japan, and an American consul is 
authority for the statement that at present more tonnage is shipped 
in and out of Kobe than goes in and out of any other port on the 
Pacific Ocean. 

One of the important factors in the growth of this port is that it 
is the transshipping point for cargo for Chosen, for Vladivostok, 
for China, and to some extent for other points in the Orient. Excel¬ 
lent harbor works have been carried through, and the dock accommo¬ 
dations are ample for the trade normally handled and even for abnor¬ 
mal conditions. It is at Kobe that great delay has been experienced 
in the transshipment of cargo consigned to Chosen and to American 
importers at Shanghai. 

The city of Kobe lies partly on the shore around the harbor and 
partly on the sides o.' the hills sloping sharply up from the narrow 
stretch of level ground fronting the water. It has several good 
business streets and a few modern buildings. Most of the important 
houses doing business in Japan have branch offices in Kobe, and it 
is the headquarters for several buyers purchasing Japanese electrical 
goods for Australian and New Zealand wholesale houses. 

There are several large industries in Kobe itself, such as the 
Kawasaki and the Mitsubishi Dockyards, and two or three match 
factories. The Kawasaki Dockyards have an electrical plant and 
make an extensive line of apparatus. 

Other cities in Japan that are of importance either in shipping 
or in industry are Kyoto, Nagoya, and Nagasaki. Kyoto is the 
old capital of Japan, about 27 miles from Osaka, with a population 
of about 500,000. There are several porcelain factories here, one of 
which makes the best high-tension insulators produced in the country. 
Nagoya, about 233 miles south of Tokyo and 142 miles north of 
Kobe on the railway between those cities, has a population of about 
450,000. Here are many porcelain factories, among which several 
turn out porcelain for electrical use and one makes high-tension 
insulators. Nagasaki, at the southern end of Japan proper, and 
about 375 miles south of Kobe, is chiefly interesting as the great 
coaling port of the Orient. In addition, there are located here the 
large shipbuilding yards of the Mitsubishi Dockyards and Engineering 
Co., where in the last year or two the commercial manufacture of a 
broad line of electrical apparatus has been taken up. For many 
years the Mitsubishi corporation has been making electrical apparatus 
and appliances for the ship work that it did, much of which is for 
the Japanese Navy, but now it is going heavily into general electrical 
manufacturing. 


JAPAN. 


117 


AGRICULTURE. 

In spite of the great industrial development that has taken place 
in Japan in the last few years, agriculture is still the chief means of 
livelihood of a majority of the people. 

Rice is the chief product of the soil, and it is estimated that the 
annual production in recent years is 292,000,000 bushels. Barley, 
rye, and wheat totaled 115,888,000 bushels in 1916. Barley is the 
largest of these crops and is used not only for food but in increasing 
amounts by the Japanese breweries, which are selling their product 
throughout the Far East. Other food products of the soil are millet, 
soya beans, buckwheat, rapeseed, sugar cane, and both white and sweet 
potatoes. The total crop of white and sweet potatoes in 1915 was 
about 10,833,000,000 pounds. 

Tea and silk are close behind rice in importance to the country. 
The production of the former was 84,200,000 pounds in 1916, and over 
50,000,000 pounds of silk were produced in 1916. A great deal of 
tobacco is also raised and sold to the Government tobacco monopoly, 
theproduction being 108,000,000 pounds in the fiscal year 1915-16. 

The ordinary income of the Government forests amounted to 
11,308,000 yen in 1915-16. Domestic animals slaughtered during 
1915 totaled 277,980 cattle and calves, 59,969 horses, 9,362 sheep and 
goats, and 278,465 hogs. 

MINING. 

Official statistics show that at the end of 1915 there were regis¬ 
tered 5,307 mining title deeds, of which 1,715 covered properties 
that were still being worked. The following table showing the 
number of title deeds and area of the mines in operation in Japan 
at the end of 1915 was taken from the Financial and Economic 
Annual of Japan for 1917: 


Kinds of mines. 


Gold. 

Gold and silver. 

Gold, silver, and copper. 

Gold, silver, copper, and lead.... 
Gold, silver, copper, lead, and 

zinc. 

Gold, silver, copper, and zinc.... 

Gold, silver, and lead. 

Gold and copper. 

Silver. 

Silver and copper. 

Silver, copper, and lead. 

Silver, copper, lead, and zinc.... 

Silver, copper, and zinc. 

Copper. 


Num¬ 
ber of 
title 
deeds. 

Area of 
prop¬ 
erty. 

Kinds of mines. 

Num¬ 
ber of 
title 
deeds. 

42 

Acres. 

7,500 

32,900 

29,300 

7,800 

Copper and zinc. 

8 

109 

Copper and iron. 

16 

81 

24 

Copper and iron pvrites. 

2 

Chrome iron. 

5 

Antimony. 

18 

21 

6,800 

5,300 

Iron. 

13 

17 

7 

Manganese. 

38 

2,000 

Graphite. 

9 

21 

6,100 
600 

Coal. 

524 

1 

Peat. 

91 

69 

17,000 

4,100 

Petroleum. 

164 

16 

Sulphur. 

57 

8 

9 

193 

1,600 

3,100 

41,900 

Other. 

152 


Total. 

1,715 



Area of 
prop¬ 
erty. 


Acres. 

1.700 
2,000 

400 

800 

1,800 

1,400 

3,500 

800 

228,400 

9,800 

23,000 

9.700 
54,100 


503,400 


It will be noted that copper is the leading metal mined in Japan, 
and this home raw material is a strong factor in the development of 
electrical manufacturing in that country. The figures also show the 
strength of the country in coal resources and its weakness in iron 




































118 


ELECTRICAL GOODS. 


supplies. Japan is trying to compensate for the lack of iron by 
acquiring properties in China, Manchuria, and other places. 

As an indication of the development of those mineral resources 
that have a bearing on electrical manufacturing, the following table 
shows the Japanese production of copper, coal, and iron in short 
tons and of crude petroleum in barrels of 42 gallons for the 10 years 
ended in 1915: 


Years. 


1906. 

1907. 

1908. 

1909. 

1910. 

1911. 

1912. 

1913. 

1914. 

1915. 


Copper. 

Pig iron 
and steel. 

Coal. 

Crude 

petroleum. 

Tons. 
41,260 
42,670 

44.810 
50,530 
54,360 
58,860 

68.810 
73,300 
77,660 
83,130 

Tons. 
52,720 
55,085 
49,185 
58,900 
73,550 
69,760 
75,825 

77.590 

98.590 
90,110 

Tons. 

14,308,000 
15,215,000 
16,342,000 
16,587,500 
17,286,000 
19,440,000 
21,649,000 
23,500,000 
24,574,000 
22,587,000 

Barrels. 

1.565.900 

1.719.900 
1,864,800 
1,882,400 

1.826.700 
1,737,600 
1,622,500 

1.923.900 
2,621,200 

2.917.700 


In copper Japan is well supplied locally and there are several 
large-scale undertakings, all of which have been working at full 
capacity for the last few years. In the case of the Ashio mine of 
the Furukawa interests and the Hitachi mine of the Kuhara company, 
the same people are engaged in the manufacture of copper products, 
and this makes them formidable competitors in the copper-wire 
market. 

The coal supply of the country is probably not so favorable for 
manufacturing as is that of copper, but on the other hand the hydro¬ 
electric developments in Japan are able to furnish a large part of 
the total manufacturing power requirements, according to statistics. 

Japan’s greatest need in raw materials for electrical manufacturing 
is iron, and it is making every effort to develop sources of supply 
of this metal from China, Manchuria, and Chosen and to secure con¬ 
trol of such properties so as to be independent of the Occident for 
its supply. Japanese capital has extensive interests in Chinese iron 
properties and steel mills and Japan itself has steel mills, for which 
a large amount of the iron comes from the outside; but Japanese 
electrical manufacturers have obtained their electrical sheets mainly 
from the United States, England, and Sweden. There is no local 
production of this class of iron in so far as was known, and, owing to 
a shortage in this supply when the steel embargo was put into effect, 
American electrical manufacturers have recently sold an increasingly 
large number of power motors in Japan, whereas for two or three 
years they had been unable to do any such business to speak of. 

INDUSTRIAL DEVELOPMENT. 

As it is the intention of the writer to devote a section of this report 
specially to electrical manufacturing in Japan, he will here discuss 
only industry as a whole. A concise statement of the manufacturing 
development of Japan is given in the official guide published by the 
Imperial Japanese Railways, which states: “Large factories in the 




















JAPAN. 


119 


modern sense are of comparatively recent growth; the greater 
number of existing establishments turn out work done at home, 
work done on a piecework system, as well as on a partial piecework 
system.” The Japanese Government subsidizes certain industries, 
among them steel companies, and, under the regulations provided, 
guarantees 8 per cent dividends to such companies. This is a factor 
in the development of new industries, but so far as is known, no 
electrical manufacturers have worked under this plan. 

The growth of manufacturing is shown by the following table, 
from the Financial and Economic Annual of Japan for 1917, giving 
the number of factories in the country and the number of employees, 
from 1906 to 1915: 


1906.. 

1907. 

1908. 

1909. 

1910. 

1911. 

1912. 

1913. 

1914.. 
1915. 


Years. 


Number of factories. 

Number of employees. 

Using 

power. 

Not 

using 

power. 

Total. 

Male. 

Female. 

Total. 

4,656 
5,207 
5,617 
6,723 
6,731 
7,756 
8,710 
9,403 
10,334 
10,688 

5,705 
5,731 
5,773 
8,703 
6,792 
6,472 
6,409 
6,408 
6,728 
6,121 

10,361 
10,938 
11,390 
15,426 
13,523 
14,228 
15,119 
15,811 
17,062 
16,809 

242,944 

257,356 

248,751 

240,864 

274,587 

317,388 

348,230 

375,596 

318,667 

350,976 

369,233 
385,936 
400,925 
451,357 
442,574 
476,497 
515,217 
540,656 
535,297 
559,823 

612,177 
643,292 
649,676 
692,221 
717,161 
793,885 
863,447 
916,252 
853,964 
910,799 


In 1915 steam engines were used to a total capacity of 265,934 
horsepower and steam turbines to a total of 215,151 horsepower, 
making 481,085 horsepower in all. Internal-combustion engines 
totaled 47,797 horsepower, of which 43,101 horsepower were gas and 
4,696 horsepower petroleum units. Water power was used to the 
extent of 317,573 horsepower, with 230,715 horsepower classed as 
turbines, 84,241 horsepower as Pelton wheels, and 2,617 horsepower 
as native water wheels, which are either over or under shot types, 
made of wood used for small powers. 

One heading gives electric motors as the power used, totaling 
219,269 horsepower, of which 94,510 horsepower is electricity gener¬ 
ated in the same factory and 124,759 horsepower is electricity sup¬ 
plied from outside; but there is nothing to indicate whether the power 
classified as generated in same factory has already been listed under 
the prime movers. 

The table following shows the number of factories in different indus¬ 
tries in Japan that were using power and the amount of various kinds 
of power that was being used on December 31, 1915-, according to 
figures published in the Financial and Economic Annual of Japan for 
1917. 
























120 


ELECTRICAL GOODS, 



Number of factories. 

Steam plants. 

Kinds of factories. 

.Using power of— 

Not using 
power. 

Total. 

Engines. 

Turbines. 


One kind. 

Two or 
more 
kinds. 

Textile factories: 

Silk-filature. 

Spinning. 

Throwing... 

1,845 

83 

100 

646 

56 

21 

409 

2 

59 

1 

4 

1,652 

225 

163 

23 

7 

2,900 

141 

180 

1 

108 

3,761 

466 

771 

23 

55 

Horse¬ 
power, 
a 8,866 
65,493 
866 

Horse¬ 
power, 
a 1,540 
60,491 
ol09 

Cotton ginning and refining. 

Weaving... 

Bleaching, dyeing, finishing, etc. 

Knitting and braiding. 

93 

1,880 

181 

588 

11 

229 

60 

20 

209 
29,733 
a 4,292 
247 

92 

o7,616 

o422 

9 

Other. 

30 

18 

ol71 


Total. 

4,800 

1,061 

2,545 

8,406 

ol09,877 

a 70,209 

Machine and iron factories: 







Machine-making. 

376 

88 

19 

483 

o 4,047 

522 

Shipbuilding and carriage-making..... 

57 

20 

48 

125 

7,641 

5,468 

Tool-making. 

184 

32 

67 

283 

5 y 525 

102 

Foundry,metal,and metal-ware making 

363 

62 

no 

535 

9,181 

1,348 

Total. 

980 

202 

244 

1,426 

0 26,394 

7,440 

Chemical factories: 







Ceramic. 

258 

32 

526 

816 

a 13,439 

1,321 

Paper mills. 

119 

55 

95 

269 

o 15,205 

488 


1 

1 

20 

22 

15 


Leather and fur dressing. 

20 

13 

5 

38 

417 

a 18 

Explosives. 

62 

4 

108 

174 

1,602 

20 

Oils and waxes. 

38 

26 

10 

74 

o 1,428 

610 

Medicines, chemicals, etc. 

47 

31 

55 

133 

2,920 

78 

Gums. 

35 

17 

7 

59 

2,028 

729 


7 

1 

9 

17 



Soaps and candles. 

26 

10 

9 

45 

927 

o 29 

Dyestuffs, paints, varnishes, lacquers, 







pigments, and pastes. 

26 

7 

16 

49 

264 

25 

Artificial manures. 

34 

17 

1 

52 

3,465 

186 

Other. 

51 

12 

27 

90 

2,884 

90 

Total.-. 

724 

226 

888 

1,838 

o44,594 

o3,594 

Food and drink factories: 







Breweries... 

441 

55 

808 

1,304 

4,038 

287 

Sugar mills . 

16 

4 

3 

23 

3,836 

77 

Tobacco ___ 

5 


1 

6 



Tea . 

54 

10 

172 

236 

781 

54 

Rice and flour mills. 

218 

19 

8 

245 

6,054 

133 

Lemonade, ice, and mineral water . 

54 

13 

4 

71 

3,606 

585 

Confectionery .. 

48 

13 

78 

139 

488 

213 

Canning and bottling . 

39 

5 

36 

80 

o261 

19 

Pairing nf animal and fish products 

29 


165 

194 

306 


Other . t . 

64 

7 

8 

79 

1,013 

105 

Total ... 

968 

126 

1,283 

2,377 

0 20,383 

1,473 

Special factories: 



1 ■' 




Electrical industry . 

47 

37 

19 

103 

42,617 

129,570 

Gas industry . 

21 

13 

1 

35 

971 

105 

Metal refineries . 

25 

9 

5 

39 

2,578 

330 

Total . 

93 

59 

25 

177 

46,166 

130,005 

Other factories: 







Printing and publishing . 

498 

49 

120 

667 

361 

2 

Paper goods . 

41 

1 

93 

135 

15 


Wood and bamboo work . 

453 

38 

241 

732 

o 14,189 

al,839 

T ,eat.b er good s . .. 

6 

1 

24 

31 

165 

Feather goods . 

26 

2 

40 

68 

185 


Matting, strawbraid, etc . 

1 


20 

21 



Articles of precious stones, jaws, horns, 







etc ... 

11 


37 

48 



Other . 

278 

44 

561 

883 

o 3,605 

589 

Total . 

1,314 

135 

1,136 

2,585 

a 18,520 

a 2 430 

Grand total . 

. 8,879 

1,809 

6', 121 

16,809 

o265,934 

a 215,151 


a Incomplete. 


























































































































JAPAN 


121 


Kinds of factories. 


Textile factories: 

Silk-filature. 

Spinning. 

Throwing. 

Cotton ginning and refining 

Weaving.... 

Bleaching, dyeing, finishing, 

etc. 

Knitting and braiding.... 
Other. 


Total. 


Machine and iron factories: 

Machine-making.. 

Shipbuilding and carriage¬ 
making. 

Tool-making. 

Foundry, metal, and metal- 
. ware making. 


Total. 


Chemical factories: 

Ceramic. 

Paper mills. 

Lacquer ware.. 

Leather and fur dressing 

Explosives. 

Oils and waxes. 

Medicines, chemicals, etc.... 

Gums. 

Toilet articles. 

Soaps and candles. 

Dyestuffs, paints, varnishes, 
lacquers, pigments, and 

pastes. 

Artificial manures. 

Other. 


Total. 


Food and drink factories:. 

Breweries. 

Sugar mills. 

Tobacco. 

Tea. 

Rice and flour mills. 

Lemonade, ice, and mineral 

water.. 

Confectionery.. 

Canning and bottling.. 

Curing of animal and fish 

products.... 

Other.. 


Total. 


Special factories: 

Electrical industry. 

Gas industry. 

Metal refineries.... 


Total. 


Other factories: 

Printing and publishing 

Paper goods.. 

Wood and bamboo work... 

Leather goods.. — 

Feather goods. 

Matting, straw braid, etc.... 
Articles of precious stones, 

jaws, horns, etc_^. 

Other. 


Total. 

Grand total. 


Gas-en¬ 

gine 

power. 

Petro¬ 

leum-en¬ 

gine. 

power. 

Water-power plants. 

Electric-m&tor 

power. 

Turbine 

wheels. 

Pelton 

wheels. 

Japanese 

wheels. 

Gener¬ 
ated in 
factory. 

Pur¬ 

chased 

from 

outside. 

Horse- 

Horse- 

Horse- 

Horse- 

Horse- 

Horse- 

Horse- 

power. 

power. 

power. 

power. 

power. 

power. 

power. 

a 79 

a 22 

o 30 

o 31 

a 785 

64 

a 1,034 

1,262 

77 

2,045 

350 

oll4 

10,593 

19'445 

a 140 

41 

717 


o63 

'321 

2' 201 

303 

43 

133 

3 

45 


710 

10,603 

1,272 

392 

33 

o222 

o 6,880 

12,577 

225 

22 

1 


o 27 

115 

1,359 

541 

74 

3 

20 

a 59 


2,122 

16 


4 


o'15 


o61 






a 13,169 

ol,551 

o 3,325 

0 437 

ol,330 

0 17,973 

o39,509 

1,461 

400 

5 



746 

a 8 842 

2,231 

85 




20 782 

3 945 

690 

11 




10 943 

2 069 

897 

422 

1,853 

o205 

205 

7,904 

9,803 

5,279 

918 

1,858 

o205 

205 

40,375 

o 24,659 

1,828 

165 

2,570 


o23 

2,477 

10,468 

3,568 

99 

17,790 

25,231 

o74 

14^377 

13; 917 
20 

138 

20 





604 

105 

16 



15 

1 016 

191 

335 

112 



o 40 

’ 15 

3,135 

478 

18 

4,700 

60 

ol2 

890 

2,553 

73 




(a) 

83 

705 

5 

8 



3 

28 

a 154 





450 

234 

162 

6 

* 


1 

473 

919 

41 

18,000 

40 

o 5 

3,034 

932 

308 

7 


6,150 

5 

1,963 

1,014 

a 8,073 

492 

43,060 

31,481 

ol78 

24,305 

34,274 

267 

316 

3 

2 

al63 

597 

1,685 

2 

23 


120 


152 

1,596 

86 







45 

43 


5 

31 


146 

567 

11 

80 

1 

o 6 

9 

2,154 

1,965 

222 

30 



212 

598 

58 

10 


1 



221 

17 

47 



( a ) 

15 

32 

8 

13 



a 7 


21 

86 

45 



70 


317 








3,015 

730 

113 

129 

o 277 

985 

6,856 

7,650 

14 

181,900 

51,751 


9,364 

9,562 

3,240 

630 




861 

8 

'515 

6 

96 

36 

o 40 

259 

148 

11,405 

650 

181,996 

51,787 

o 40 

10,484 

9,718 

945 

147 





a 2,436 

18 


30 




'110 

651 

90 

301 

182 

a 442 

49 

2,735 

2 






420 

42 

12 



8 


236 







8 


27 





189 

502 

79 

32 

20 

a 77 

339 

3,609 

2,160 

355 

363 

202 

a 527 

388 

o9,743 

a 43,101 

a 4,696 

a 230, 715 

« 84,241 

a 2,557 

a94,510 

0124,759 


a Incomplete. 



















































































































































122 


ELECTRICAL GOODS. 


The following summary table shows the number of factories in 
Japan of each general class that were using one or more kinds of 
power and that were not using power in 1915: 


Number of factories. 


Kinds of factories. 

Using power of— 

Not using 
power. 



One kind. 

Two or 
more kinds. 

Total. 

Textile factories. 

4.800 

1,061 

202 

2,545 

244 

8,406 

1,426 

Machine and iron factories. 

'980 

Chemical factories. 

724 

226 

888 

1,838 

2,377 

177 

Food and drink factories. 

968 

126 

1,283 

Special factories.. 

93 

59 

25 

Other factories. 

1,314 

135 

1,136 

2,585 


Total. 

8,879 

1,809 

6,121 

16,809 



The textile industry is the most important, and Japan is a great 
competitor in the world’s cotton market. As an indication of the 
development, data for the end of 1915 show that there were 273 
cotton mills then in operation, with a capital investment of about 
$42,500,000. An average of 2,787,720 spindles were worked daily, 
and the production of cotton yarn was approximately 705,105,200 
pounds for the year; 23)951 male and 100,894 female operatives 
were employed, a total of 124,845. The average working days for the 
year numbered 289, and the hours of operation averaged 20. Male 
workers received an average of 48 sen (24 cents) per day and female 
operatives 30 sen (15 cents). In 1906 there were only 83 cotton 
mills operating in Japan, with a daily average of 1,441,934 spindles 
working. 

The weaving of various kinds of fabrics runs into large figures. 
In 1915 there were 418,419 weaving mills, with 136,731 machine and 
543,799 hand looms, a total of 680,530 looms. The ratio between 
looms and weaving mills shows how largely this is still a “ household 
industry,” as is the case in many lines. The value of the total 

E roduct of silk fabrics, silk and cotton mixtures, cotton fabrics, 
emp fabrics, woolen and mixed cloths, carpets, and miscellaneous 
fabrics was $190,064,061 in 1915. 

Other lines that are produced in large quantities are Japanese 
paper, to a value of $11,197,849 in 1915; European paper, valued at 
$14,854,755, made in 44 paper mills with a total equipment of 440 
machines; matches, made in 189 factories by 21,357 employees and 
valued at $11,385,397; and porcelain and earthenware, to a value of 
$8,766,123. Porcelain and earthenware are also made in small as well 
as large establishments. In 1915 there were 5,725 factories employing 
23,544 male and 8,758 female operatives, or 32,302 in all. This 
means less than 6 operatives per establishment, which hardly con¬ 
forms to the American standard of a factory. 

The various Government factories, such as printing works, rail¬ 
way works, mints, tobacco plants (tobacco is a Government mo¬ 
nopoly in Japan), and military and naval works, employ 161,425 
operatives and apprentices and 32,571 laborers. 

Shipbuilding has developed in the last few years into a leading 
industry of Japan. There are four or five large private corporations 



















JAPAN. 


123 


engaged in the business and making vessels of large tonnage, and a 
number of smaller yards, most of which are of limited capacity. 
During the last two or three years the large yards have been building 
ships ior England, France, and other countries, in addition to increas¬ 
ing the fleets of various Japanese steamship companies. These yards 
employ 5,000 to 7,000 men. 

The industrial development of Japan since the war began has 
brought a great deal of wealth into the country, but labor has not 
participated to a great extent. Textile manufacturers have probably 
prospered most and stock lists published in the newspapers quote 
dividends of 25 to 60 per cent upon shares in spinning and weaving 
companies. One of the large shipbuilding companies paid 30 per 
cent on its stock last year, a copper-mining company paid 35 per 
cent, a chemical works 35 per cent, and a sugar concern 20 per cent. 

While a great deal of the manufacturing in Japan is carried on in 
households and in small shops, the status of the country as a manufac¬ 
turing nation of the future must not be underestimated. The boom 
that has been experienced in Japan since the war began has brought 
much ready money into the country, which is being used to develop 
new industries as well as to strengthen those that are established. 
Cheap labor gives Japan an advantage over foreign manufacturers, 
though not to the extent that the difference in wages would indicate. 

The quality of many of the manufactured products of Japan has 
not been very good, but the Department of Agriculture and Com¬ 
merce is trying to establish some sort of inspection of manufactured 
goods before they are shipped abroad. Under the heading, “ Discuss 
Advisability of Export Association,” the following article recently 
appeared in the Japan Advertiser of Tokyo: 

Leading cotton-hosiery manufacturers in Tokyo, Yokohama, Osaka, Nagoya, Kobe, 
and other towns held a conference in the Department of Agriculture and Commerce 
yesterday morning with the officials in charge of industrial affairs of the towns, to dis¬ 
cuss the advisability of accepting the Government demand to establish an associa¬ 
tion of their own in which to vest the authority to control exports. 

Mr. Oka, director of the Commercial and Industrial Affairs Bureau, delivered a 
speech explaining how the Government was led to devise the measure of controlling 
the exports of inferior goods through the conditioning of export articles by a central 
council of trade associations. He laid special emphasis on the importance of retain¬ 
ing the market overseas by the prevention of the sale overseas of irregular or shoddy 
goods, mentioning several examples pointed out by foreign buyers. 

Mr. Oyama, expert in the Department of Agriculture and Commerce, explained the 
Government scheme of conditioning and the proposal regarding the organization of 
the council. The proposals submitted included the organization of the association, 
the authority of the body to control the conditioning of export goods, the kinds of 
goods to be conditioned, the localities of conditioning houses, the making of the 
goods conditioned, and other matters. 

The conference did not come to a final decision yesterday on all those points. It 
will be resumed soon and before long the activity of the association will begin to 
unify export hosiery. 

It was reported by electrical men that the Japanese Government 
had tried to arrange the organization of some such controlling body 
to take care of exports of electrical goods, but the matter was not 
being discussed publicly during the writer’s stay in Japan. Buyers 
of electrical goods for shipment abroad stated to the writer that they 
had goods delivered to a god own or warehouse, where they carefully 
unpacked everything and did their own “conditioning,” accepting 
for shipment and paying for only what passed their personal inspec¬ 
tion. 


124 


ELECTRICAL GOODS. 


TRANSPORTATION FACILITIES. 

Japan possesses in normal times fair means of distributing goods, 
both to the interior of the islands comprising Japan proper and be¬ 
tween the main islands and those outlying. Owing to the war-time 
industrial conditions, there is now considerable congestion of freight 
on the railways of the country, but it is assumed that this will dis¬ 
appear with the return of normal conditions. 

At the end of the fiscal year 1915-16, from the latest data given in 
the Financial and Economic Annual for 1917, there were open to 
traffic in Japan proper, 5,757 miles of Government-owned railway 
and 1,744 miles privately owned, or a total mileage of about 7,500. 
The State-owned lines are mainly 3-foot 6-inch gauge, and some of 
the private lines are the same, though there are a number of nar¬ 
rower gauge. In the mileage given electric trams and steam motor 
cars are included, there are probably about 6,600 miles or less of 
actual steam railway, which, however, covers the country to good 
advantage. 

The rolling stock at the time noted comprised 3,107 locomotives, 
8,347 passenger coaches, and 48,335 freight cars, but these figures 
include electric trams. The freight cars are of low capacity, probably 
averaging not more than 8 or 9 tons, mostly of the four-wheel type. 
There is considerable agitation for an increase in the gauge of the 
Government railways in order to permit the use of heavier trains. 
If this is done, freight cars of capacities approximating those of the 
railways of the United States will be used. 

In connection with the railway system, there are Government- 
supervised ferry steamers connecting the various rail terminals of 
the different islands; these steamers are excellent for the service re¬ 
quired and make frequent trips. In addition to the railway facili¬ 
ties afforded, numerous steamers and sailing vessels operate between 
the various ports of Japan, which give good service at low rates. 
Only Japanese-registered vessels can carry passengers between home 
ports. 

While facilities for handling imports are of general interest in con¬ 
nection with this report, the facilities for handling shipments from 
Japan to other parts of the world are of greater importance, in view 
of the fact that Japan is becoming a factor in the export trade of the 
Pacific and to no small extent in electrical goods. 

Through Government subsidies and cheap operating labor Japan 
has built up in the last decade a strong merchant marine. In 1911 
a total of $6,107,970 was paid by the Government to the 20 com¬ 
panies in operation in the way of shipping subsidies and bounties; 
and in 1916, with 28 companies operating, $3,624,247 was paid. 
Japan is said to be second among the countries of the world in the 
amounts paid for subsidizing shipping. The total steamer tonnage 
of Japan at the end of 1916 was approximately 1,700,000 tons gross, 
and it has since increased. The three leading steamship companies 
are the Nippon Yusen Kaisha, the Toyo Kisen Kaisha, and the 
Osaka Shosen Kaisha. Several others are rapidly gaining in im¬ 
portance. 

In normal times the Nippon Yusen Kaisha maintains four over-sea 
lines, with sailings every two weeks: A European line from Yokohama 


JAPAN. 


125 


to Antwerp, via London, an American line from Hongkong to Seattle, 
via Kobe and Yokohama, a line from Kobe to Bombay, and another 
from Yokohama to Calcutta. It also operates a line with monthly 
service from Yokohama to Melbourne, Australia, via Kobe, Shanghai, 
Hongkong, Manila and Zamboango in the Philippines, and various 
Australian ports. This company also operates two steamers a week 
to Shanghai, one a week to Formosa, nine vessels a month to North 
China ports, and one about every three weeks to Vladivostok. 

The Osaka Shosen Kaisha operates a line from Hongkong to 
Tacoma, via Kobe and Yokohama, and a Kobe-JBombay line. The 
Toyo Kisen Kaisha has a large fleet of fast steamers. It operates 
between Hongkong and San Francisco via Japan ports and has 
various other sailings. 

These are the sailings in normal times; now there are many more 
Japanese steamers, giving direct communication all over the world. 
South America has direct lines with about one sailing in two months, 
both the east and the west coast being covered. The Japanese are 
trying to offer competition to the steamers of the Canadian line from 
Vancouver to Hongkong, via Japan ports, which make the trip from 
Vancouver to Yokohama in 10 days. a A Japanese line recently 
established makes the trip from Seattle to Yokohama in 12 days. 
The various Japanese steamship companies have a large fleet of 
cargo boats plying the Pacific and can be said to have practically a 
monopoly on the freight-carrying tonnage of that ocean to-day. 

The Pacific Mail Steamship Co., an American company, operates 
three boats between San Francisco and Manila, via various Japanese 
and Chinese ports, and the Canadian Pacific Co. has normally four 
boats running between Vancouver and Hongkong, two of which are 
the largest and fastest on the Pacific. The Pacific Mail Steamship 
Co. during the last year has begun service on a line from San Francisco 
to India, which will be of great value. English, Australian, French, 
and German lines also operate to and from Japan in normal times. 

In addition to the passenger and freight steamers, there are normally 
a number of American cargo boats operating to the Far Eastern ports, 
but Japan far outstrips the United States in tonnage in this class, 
as well as in passenger and freight steamers. 

Japanese steamers operate regularly also on the Yangtse River in 
China. The Nisshin Kisen Kaisha maintains service every two 
days between Shanghai and Hankow, with three other regular lines 
from Hankow to Ichang, Siangtan, and Changtu. 

Japanese goods are therefore handled by Japanese steamers 
direct to the principal ports of- the world on schedules giving frequent 
service. This is of inestimable value to Japan and is enabling it 
greatly to increase its over-sea trade. The lack of other tonnage 
forces American goods to use Japanese lines, though they suffer a 
freight handicap, in that Japanese shippers receive lower rates. In 
short, Japanese electrical manufacturers have far superior facilities 
for sending their goods to over-sea customers and they are making 
the most of this situation. 


a The Canadian steamers have been taken off the Pacific route since this report was written. 



126 


ELECTRICAL GOODS. 


ELECTRICAL DEVELOPMENT IN JAPAN. 

Electricity has been used in Japan for many years, the first plant 
being started in Tokyo in the fall of 1887. By the end of 1890 all 
the large cities in the country had electric-light plants, and the total 
generating capacity was about 1,500 kilowatts. Since that time 
the growth has been rapid and at present Japan shows an excellent 
electrical development, considering the purchasing capacity of the 
people. 

A division of the Department of Communications of the national 
Government has control over all electrical undertakings and in 
connection with its supervision maintains complete data on all such 
enterprises. A complete report is published each year, the latest 
obtainable, published in 1917, giving 1915-16 data. This is in 
Japanese and no translation has been made; the latest official publi¬ 
cation in English is the Statistical Report of Electric Undertakings 
in Japan for 1914°. At intervals during a year, general data on the 
status of electrical enterprises are published in the newspapers; and 
from this information and the translation of certain parts of the latest 
official statistics, the following data have been compiled. 

• ELECTRICAL SYSTEMS IN OPERATION. 

Figures up to September 30, 1917, show that in Japan there were 
530 power and light systems, 42 electric tramways, and 48 combined 
railway and lighting systems. The complete statistics, as translated 
from the official report, show that at the end of 1915 there were 438 
power and light systems in operation and 92 under construction, 25 
railways operating, with 17 under construction, and 47 combined 
railway and lighting systems. At the end of 1914 there were in 
operation 390 power and light systems, 24 electric railways, and 
47 combined railway and light systems. The figures show that there 
has been a strong development in public-service systems in Japan in 
the last few years. In addition to the central-station systems, there 
were at the end of 1915, 1,609 private plants and 121 Government- 
owned plants in operation, with 53 of the former and 6 of the latter 
class under construction. 

The following table shows the total number of central-station 
systems and of private and Government plants in operation and 
under construction in Japan at the end of 1915, and the number 
operating under different kinds of power: 


Systems. 

Water 

power. 

Steam 

power. 

Gas. 

Electric 

power. 

Total. 

Central-station systems: 

In operation. 

230 

61 

96 

123 

510 

Under construction. 

62 

13 

18 

16 

109 

Total. 

292 

74 

114 

139 

619 

Private and Government systems: 

In operation. ! 

144 

682 

403 

501 

1,730 

59 

Under construction. 

22 

12 

9 

16 

Total. 

166 

694 

412 

517 

1,789 

Grand total. 

458 

768 

526 

656 

2^408 


a Since this report was written the Statistical Report of Electric Undertakings in Japan for 1916 has 
























JAPAN. 


127 


The importance of water power in central-station service is clearly 
indicated in the table; in the case of private-supply plants the de¬ 
velopment is more limited hut many large-capacity hydroelectric 
developments have been made by some of the wealthy Japanese 
syndicates for use in connection with their mining or manufactur¬ 
ing enterprises. The classification 11 electric power” indicates the 
development of systems that buy their energy from some large 
power company, as is often the case in the United States. 

The kilowatt capacity of the systems listed deriving power from 
water, steam, and gas, according to the classes of service, is given as 
follows: 


Plants. 

In opera¬ 
tion. 

Under con¬ 
struction. 

Total. 

Power supply... 

Kilowatts. 

351,464 

3,005 

110,365 

Kilowatts. 
250,402 
4,375 
27,886 

Kilowatt's. 

601,866 

7,380 

138,251 

Railways_ 

Railway and power. 

Total public utilities. 

464,*34 

282,663 

747,497 

Private plants. 

175, 72,7 
21,552 

50,405 

218 

226,142 
21,770 

Government plants. 

Total isolated plants. 

197,289 

50,623 

247,912 

Grand total. 

662,123 

333,286 

995,409 



The kilowatt capacity of the electric systems in Japan, classified 
as to type of prime mover or the source of supply, is given as 
follows, for both public utilities and isolated plants, private and 
governmental: 


Motive power or supply. 

In 

operation. 

Under con¬ 
struction. 

Total. 

Public utilities: 

Water power. 

Kilgwatts. 
348,144 
109,209 
7,481 
118,212 

Kilowatts. 
261,783 
19,910 
970 
34,599 

Kilowatts. 
609,927 
129,119 
8,451 
152,811 

Steam. 

Gas. 

Electricity. 

Total. 

583,046 

317,262 

900,308 

Private and Government plants: 

Water power. 

54,064 
127,270 
15,955 
73,282 

38,258 

10,330 

2,035 

5,828 

92,322 

137,600 

17,990 

79,110 

Steam . 

Gas . 

Electricity . .. 

Total .. 

270,571 

56,451 

327,022 

Total: 

Watfir pnwp.r . 

402,208 
236,479 
23,436 
191,494 

300,041 

30,240 

3,005 

40,427 

702,249 
266,719 
26,441 
231,921 

Steam. 

Gas . 

Electricity.-. 

Grand total. 

853,617 

373,713 

1,227,330 



These data emphasize the importance of the hydroelectric develop¬ 
ments in Japan. They also show that there is a strong tendency 
toward the development of large transmission systems supplying con¬ 
siderable areas, and they indicate that small gas-producer plants are 
favored more for isolated plants than for central-station work. The 





















































128 


ELECTRICAL GOODS. 


Government operates one 6,000-kilowatt gas-producer plant for the 
supply of power to an electric railway, and this makes up a large 
percentage of the total capacity in this type of prime mover. 

The statistics show that for the 767 power houses or stations belong¬ 
ing to power or railway systems, the average generating capacity is 
1,306 kilowatts in the case of water-power plants, 856 kilowatts for 
steam plants, and only 57 kilowatts for gas plants. Many of the gas 
units must be very small, inasmuch as there are a few fair-sized 
plants that bring up the average considerably. 

In the last year or so the industrial boom in Japan has brought 
about a great increase in plant capacity, and large-capacity steam- 
turbine units are being installed. The Osaka plant is adding three 
Japanese-made turbo sets of 10,000 kilowatts’ capacity each. In 
connection with the plant capacity of the hydroelectric stations it 
may be noted that several such large plants have been overdeveloped, 
in one observed case very markedly. 

According to the Government data, at the end of 1915 there were 
3,051,925 families using electric light, with 7,536,930 lamps in use, 
an average of 2.5 lamps per family, which suggests that Japan has 
central-station problems as difficult as those of European systems. 
The rating of the lamps varied as follows: Less than 10 candlepower, 
3,569,277 lamps, or 47 per cent of the total; 10 candlepower, 2,806,066 
lamps, or 37 per cent of the total; 16 candlepower, 822,471 lamps, or 
11 per cent of the total; over 20 candlepower, 340,515 lamps, or 5 
per cent of the total. 

The average time lamps were used was 2.54 hours per night. Only 
2.2 per cent of the total number of families supplied were served 
through meters, and the number of lamps they use represents about 
15 per cent of the total connected lamps. Approximately 40 per 
cent of the total number of lamps used were of the metal-filament 
type at the time covered by the report, the year 1915. 

There were 39,310 power consumers, with 42,789 motors on the 
fines. The total horsepower of the motors connected amounted to 
182,704, made up as follows: Under 1 horsepower, 5,649 motors, with 
an aggregate rating of 2,773 horsepower, or li per cent of total; 
under 5 horsepower, 28,827 motors, with an aggregate rating of 
45,577 horsepower, or 25 per cent of total; under 10 horsepower, 
4,845 motors, with an aggregate rating of 27,036 horsepower, or 15 
per cent of total; over 10 horsepower, 3,468 motors, with an aggregate 
rating of 107,318 horsepower, or 58^ per cent of total. These figures 
include only the motors served by public-utility companies. Those 
supplied by their own plants, classified as isolated or Government- 
owned plants, totaled 13,680 motors, with an aggregate rated capcaity 
of 344,545 horsepower. 

The total number of electric motors in service at the end of 1915 
was therefore 56,469, with an aggregate capacity of 527,249 horse¬ 
power, and these were used in the following industries: Weaving and 
dyeing mills, 9,288 motors, of 79,008 horsepower aggregate capacity; 
machine shops and iron works, 12,014 motors, of 158,387 horsepower 
aggregate capacity; chemical works, 3,525 motors, of 67,661 horse¬ 
power aggregate capacity; factories making foodstuffs, 19,859 motors, 
of 45,071 horsepower aggregate capacity; mining and metallurgical 
concerns, 3,197 motors, of 122,888 horsepower aggregate capacity; 
others, 8,586 motors, of 54,234 horsepower aggregate capacity. 


JAPAN. 


129 


In addition to the general motor load carried by the electrical 
systems of Japan, there is a connected load of 43,460 kilowatts in 
chemical and similar industries. Of this total 19,344 kilowatts is 
used in the manufacture of carbide or nitrogen products, 5,233 kilo¬ 
watts in electrolytic copper work, and 4,348 kilowatts in the manu¬ 
facture of potassium chloride. 

The latest statistics seen (to the end of 1914) showed that at that 
time a fraction over 70 per cent of the power consumers were on a 
flat-rate basis and that these operated about 67 per cent of the total 
number of motors. On the basis of capacity the horsepower on 
flat rate was a little under 52 per cent. 

In connection with the hydroelectric developments there are, of 
course, many high-voltage lines, one transmission system operating 
at a pressure of 115,000 volts (rated) over a distance of 140 miles. 
There are numerous 50,000 and 60,000 volt lines, and steel towers 
are employed for these lines probably to a larger extent than in the 
United States. 

Financial statistics for power-supply systems show a total paid-in 
capital of about $109,429,535, with loans of $29,201,105. Earnings 
for 1915 were $25,406,405, made up of $15,242,506 from lighting, 
$6,951,943 from power, and $3,211,956 from wiring and miscellaneous 
items. The operating expenses totaled $14,215,242, or about 56 
per cent of the gross earnings. Dividends paid by power-supply 
systems averaged 9.2 per cent for 1915. 

The Government report gives average rates in effect in Japan at 
various times. At the end of August, 1915, the average flat rate for 
a 10-candlepower carbon-filament lamp was 59 sen (29.5 cents) per 
month on water-plant system and 74 sen (37 cents) per month on 
steam-power systems. For metal-filament lamps the rates were, 
respectively, 57 sen (28.5 cents) and 69 sen (34.5 cents) per month. 
Power supplied on a flat rate by water-power systems was charged 
for at an average of 6.50 yen ($3.25) per month per horsepower, 
when day service only was given; steam plants received 10.37 yen 
($5,185) per horsepower per month for the same class of service. 
For day and night service (24-hour) the rates are 12.87 yen ($6,435) 
per horsepower per month in the case of water-power systems and 
18.18 yen ($9.09) per horsepower per month in the case of steam 
plants. 

LIGHT AND POWER RATES IN TOKYO. 

As typical of rates in the large cities of Japan, those in effect in 
Tokyo may well be outlined. There are three companies in the 
field, two private and one municipal. The Tokyo Electric Light Co., 
a private corporation, is the most important of those supplying the 
city. Its supply is mainly from water-power developments, though 
it has some steam capacity and is adding to it. 

At the end of August, 1917, this company had connected to its 
lines 942,000 lights on flat rate and 403,500 on meter, 40,400 horse¬ 
power in motors, and 31,200 kilowatts in other industrial load. 
When lighting consumers have over five lights connected they may 
take either a meter or a flat rate; when less than five, they are not 
allowed to apply for a meter. Flat-rate service is “on” only between 
one-half hour before sunset and sunrise, and the charges per lamp 

70005°—18-9 


130 


ELECTRICAL GOODS. 


per month are as follows: Five candlepower, 0.45 yen (SO.225); 10 
candlepower, 0.55 yen ($0,275); 16 candlepower, 0.60 yen ($0.30); 
24 candlepower, 0.70 yen ($0.35); 32 candlepower, 0.80 yen ($0.40); 
50 candlepower, 1 yen ($0.50). 

These rates include overhead on wiring installed by the company 
and is subject to a reduction of 5 sen (2.5 cents) where the wiring is 
owned by the consumer. All amounts have been converted to Amer¬ 
ican money on the basis of 1 yen equaling 50 cents; the par value is 
49.8 cents. 

Where meters are installed—and they must be used if heating 
appliances are to be connected—the rates for lighting are as follows: 
Eighteen sen (9 cents) per kilowatt hour for consumption up to one 
kilowatt hour per light per month; 14 sen (7 cents) per kilowatt 
hour for consumption over one kilowatt hour per light per month, 
but less than two kilowatt hours; 10 sen (5 cents) per kilowatt hour 
for consumption over two kilowatt hours per light per month. 

The rate schedule for motor consumers is long, owing to the neces¬ 
sity for a sliding scale for various capacities on flat-rate basis. Most 
of the motors up to 5 horsepower are on flat rate. Three-phase 
motors are used except in special cases where permission is granted to 
install single-phase motors of not over 5 horsepower. The flat rates 
for motors follow: Up to 0.5 horsepower, day service only, 2 yen ($1) 
per motor per month; up to 0.5 horsepower, day and night, 3.50 
yen ($1.75) per motor per month; 0.5 to 0.75 horsepower, day 
service only, 3.50 yen ($1.75) per motor per month; 0.5 to 0.75 horse¬ 
power, day and night service, 6 yen ($3) per motor per month; 0.75 
to 1 horsepower, day service only, 5 yen ($2.50) per motor per 
month; 0.75 to 1 horsepower; day and night service, 9 yen ($4.50) 
per motor per month; 1 to 5 horsepower, day service only, 6.50 yen 
($3.25) per horsepower per month; 1 to 5 horsepower, day and 
night service, 11 yen ($5.50) per horsepower per month; 5 to 10 
horsepower, day service only, 6 yen ($3) per horsepower per month; 
5 to 10 horsepower, day and night service, 10 yen ($5) per horse- 

E ower per month. The rates last mentioned continue up to 100- 
orsepower motors and over, dropping down in that case to 4.75 yen 
($2,375) for day service only and 8 yen ($4) for day and night service. 
The Tokyo Electric Light Co. has installations of 1,000 horsepower 
operating on flat rate. Special rates are made for large consumers. 

Meter rates for power consumers are as follows: 0.05 yen ($0,025) 
per kilowatt hour, day service only, below 5 horsepower; 0.075 yen 
($0.0375) per kilowatt hour, day and night service, below 5 horsepower. 
In the case of day-service consumers, the rate drops to 0.04 yen 
($0.02) per kilowatt hour for all power consumed over 60 kilowatt 
hours per horsepower connected per month. In the case of day and 
night service consumers, the rate falls to 0.05 yen per kilowatt hour 
for all power consumed in excess of 100 kilowatt hours per horse¬ 
power connected per month. Consumers with over 5 horsepower 
connected and with day service only pay 0.045 yen ($0.0225) per 
kilowatt hour for the first 60 kilowatt hours per horsepower per 
month, and 0.035 yen ($0.0175) per kilowatt hour for all over that 
consumption. Consumers with over 5 horsepower connected and 
with day and night service pay 0.065 yen ($0.0325) per kilowatt 
hour for the first 100 kilowatt hours per horsepower per month; 
0.040 yen ($0.02) per kilowatt hour for all over that consumption. 


JAPAN. 


131 


The sliding-scale schedule continues in this manner for the usual 
range of motor-connected loads, but only one other will be noted. 
For over 500-horsepower connected motors and for day and night 
service the charges are as follows: 0.04 yen ($0.02) per kilowatt 
hour for the first 100 kilowatt hours per month per horsepower; 
0.026 yen ($0,013) per kilowatt hour for the next 100 kilowatt hours 
per month per horsepower; 0.016 yen ($0,008) per kilowatt hour for 
the next 100 kilowatt hours per month per horsepower; 0.010 yen 
($0,005) per kilowatt hour for all over 300 kilowatt hours consumed 
per month per horsepower connected. 

The rates in other cities in Japan where water power is the source 
of supply do nor vary a great deal from the foregoing in the maximum 
prices charged, but the Tokyo system seems to have the lowest 
minimum power rates scheduled. Large consumers on a certain 
large steam-plant system were said to get special rates lower than 2 
sen (1 cent) per kilowatt hour, but the engineers would cite no 
specific figures. 

„ ELECTRIC RAILWAYS-TELEPHONE AND TELEGRAPH SYSTEMS. 

At the end of 1916 there were 76 municipal or private electric 
railways in operation, with a total capitalization of $172,079,095 
(including that of combined railway and light companies). There 
were 945 miles of line in service, totaling 1,469 miles of track, and 
about 275 miles of line, or 409 miles of track, under construction. 
There were 5,303 pieces of rolling stock, and 698,889,746 passengers 
were carried in 1916. 

For city lines the fares are in some cases 5 sen (2.5 cents) for any 
distance and 9 sen (4.5 cents) for a return ticket: in other cases the 
section-fare system is employed and a charge of 3 to 4 sen (1.5 to 
2 cents) per section is made, the sections varying from 1 to 2.5 miles 
with the different systems. 

There are many excellent interurban lines, one between Yokohama 
and Tokyo being especially good. This is an 18-mile line operating 
three-car trains, as a rule, on a 15-minute schedule. Second and third 
class accommodations are provided; the second-class fare is 49 sen 
(24.5 cents). The line operating between Kyoto and Osaka charges 
40 sen (20 cents) for the distance of 29 miles. 

The telephone facilities throughout Japan are owned by the Gov¬ 
ernment and are not developed to the same extent as other electric 
utilities. A report gives statistics up to September, 1916, at which 
time there were 1,145 “centrals” and 222,512 subscribers. A news¬ 
paper in Tokyo, in giving these figures in the fall of 1917, states: 
“However, this is not good, considering that more than 153,000 
subscribers are waiting for the installation of apparatus, some of 
them having waited for more than 10 years.” It was said that 
applications for service were on file that had been made in 1907. 
The difficulty in getting service is such that when a subscriber wishes 
to dispense with his phone, he does not notify the local management 
that he desires it disconnected. He offers his number to a broker 
who probably has a long list of “buyers,” and a “buyer” is soon 
found. The “purchaser 7 ' and the “owner” sign a “registration of 
transfer,” their signatures being authenticated at the mayor's office; 
the “purchaser” then pays the “owner” through the broker anywhere 


132 


ELECTRICAL GOODS. 


from 500 to 1,500 yen ($250 to $750), and a few yen to the Govern¬ 
ment for the cost of the transfer, according to a fixed schedule de¬ 
pending upon the distance of the installation from existing available 
fines. After that all the subscriber has to do is to pay his telephone 
charges at regular periods. 

To show that the prices quoted for “buying” a phone are not 
exaggerated, the writer can cite the experience of an American 
business man in Japan. The Kobe branch needed a telephone and 
could hardly wait for one in the regular course of events. The 
Kobe manager inquired of brokers ana was quoted a price of 1,200 
yen ($600) on August 7, 1917; he at once advised the head office, 
where the price seemed pretty high, but instructions were finally 
given to take the phone at that price if a better proposition could 
not be obtained. When the branch manager went to the broker on 
August 10, to arrange for the phone at the price quoted, he was told 
that the price had risen to 1,500 yen ($750) since he had first in¬ 
quired. The head office then said it would take a chance on getting 
a phone direct from the Government on the application made on 
August 5 for an “urgency r ’ phone. The firm was to be advised about 
September 12 whether or not its application was accepted. If it 
was, the phone would be installed about the end of March, 1918. 
They would pay 100 yen ($50) to the Government when the applica¬ 
tion was accepted, and in addition 40 to 50 yen ($20 to $25) for the 
instrument and its installation. When service was given the rate 
would be 54 yen ($27) per year, payable quarterly. 

A few clippings from the Japan Advertiser, published in Tokyo, 
will throw some light on the telephone situation in Japan. The 
first one is from the issue of August 14, 1917; this was headed “Method 
of Obtaining Telephones Announced”: 

The Yokohama post office has announced that from September 3 to September 12, 
exclusive of Sundays, applications for the urgent installation of telephones will be 
received for the current fiscal year. 

The number of telephones that will be installed in Yokohama this year in this 
special way will be 300, and those who want their telephones at an early date or by 
the end of the current fiscal year on March 31, must send in a special application to 
the Yokohama post office during the days mentioned. 

This is in addition to the ordinary application for a telephone. For the application 
for the urgent installation, one must pay 185 yen ($92.50) in addition to 15 yen, which 
has already been paid with the ordinary application. In case the applications for 
the urgent installation exceed 300, the officials will make the choice. 

This peculiar system is adopted because the Government, owing to the shortage 
of funds, can not fill all applications, which greatly outnumber the number of instal¬ 
lations possible annually. 

The special-application proposition attracted a large number of 
people, including many who represented brokers and merely took a 
chance on getting a phone for resale. People stood in line for hours. 
The Japan Advertiser on October 21, 1917, carried the following item 
in its issue of that day, under the head “Urgency Telephone in 
March ”: 

In regard to the inquiries of the urgency telephones for which applications were 
made recently, the Yokohama telephone office announced yesterday that the applica¬ 
tions are now under investigation by the authorities and the result will be completed 
by the middle of next month. As soon as the investigation is completed the an¬ 
nouncement will be made and 300 new urgency telephones will be installed at the 
beginning of March. 


JAPAN. 


133 


The last item seen concerning the matter was in the Japan Adver¬ 
tiser issue for December 2, 1917, and appeared under the caption, 
“ Yokohama’s Telephone Gamble 

The Yokohama post office, which has been investigating 4,000 applications for 
urgency telephones, has completed the work and will announce the result Monday, 
December 10. Of the 4,000 applicants 300 persons will get telephones, which will 
be installed by the end of March. 

Public opinion will probably force the improvement of the telephone 
situation, as the increased business activity due to the recent industrial 
boom has made necessary a higher efficiency in this class of public 
utility. 

The Japanese Government operates the telegraph system also, 
which appears to give better service than the telephone. Rates are 
fairly low. The wireless development is likewise conducted by the 
the Government; and there are 11 land stations and 88 ship stations. 
The Government has several wireless stations on Chinese territory, 
one at Hankow having sufficient sending radius to talk with Tokyo. 

ANALYSIS OF JAPANESE MARKET FOR ELECTRICAL GOODS. 

In considering the possibilities for the sale of electrical goods in 
Japan the fact must be recognized that that country itself is becom¬ 
ing a manufacturing nation and that the Japanese people will buy 
home goods wherever possible in preference to foreign products. 
This attitude is exceptionally marked in Japan and is a very important 
factor in trade with that country. 

Another factor, which is involved especially in the sale of appara¬ 
tus, is the close relation existing between large industries and the 
more important electrical manufacturers of the country. In many 
cases these are financially interlocked, and it is natural that the 
industries will buy from themselves anything that can possibly be 
made in Japan. In fact, it would seem that some pieces of apparatus 
have been manufactured locally under these conditions, where it 
would have been far more economical to buy from abroad. 

IMPORTS OF ELECTRICAL GOODS. 

The following table shows the imports into Japan of different kinds 
of electrical goods in 1912, 1913, 1914, 1915, and 1916, and the 
amounts received from the principal countries of origin: 


Articles and countries. 

1912 

1913 

1914 

1915 

1916 

Insulating tapes: 

United Kingdom. 

• Germany ... 

$3,896 

2,955 

68,670 

634 

$2,970 

1,410 

53,089 

$2,499 
675 
17,904 
189 

$884 

$772 

United States. 

Other countries .- 

17,204 

436 

13,231 

10 

Total. 


76,155 

57,469 

21,267 

18,524 

14,013 

Posts for electric lines, and parts thereof: 

TTnifAd T^inprfnm 



569 
2,985 
269,738 



Germany , .. 

73,955 

32,595 

1,083 

128,966 

2,996 



United St&tPs . ... 


1,865 

Other countries _-_- 


Total. 





106,550 

133,045 

273,292 


1,865 



































134 


ELECTRICAL GOODS. 


Articles and countries. 


Materials for suspending electric lines: 

United Kingdom_:. 

Germany. 

United States. 

Other countries.... — 

Total.... 

Submarine telegraphic or telephonic cables: 

United Kingdom. 

Germany. 

Total. 

Insulated electric wires (armored with metals): 

United Kingdom.. 

Germany. 

United'S tates.. 

Other countries. 

Total. 

Flexible cords: 

United Kingdom. 

Germany. 

United States. 

Other coun tries. 

Total..*■.. 

Other insulated electric wires: 

United Kingdom. 

Germany. 

United States. 

Other countries. 

Total. 

Ammeters and voltmeters: 

United Kingdom. 

Germany. 

United States.. 

Other countries. 

Total. 

Wattmeters: 

United Kingdom. 

Germany. 

Switzerland. 

United States. 

Other countries. 

Total. 

Other meters: 

United Kingdom. 

France. 

Germany. 

Belgium. 

Switzerland. 

United States. 

Other countries. 

Total. 

Accumulators: 

United Kingdom. 

Germany. 

United States. 

Other countries... 

Total. 

Telegraphic or telephonic instruments, and parts 
thereof: 

United Kingdom. 

Germany... 

Belgium. 

Denmark. 

United States.[ 

Other countries.*. 


1912 

1913 

1914 

1915 

1916 

SI, 113 
744 

$337 
6 ,575 
13,056 

$256 
8,949 
23,638 

$17 


10,922 

916 

8 

$172 

110 




12, 779 

19,968 

32,843 

941 

282 

101,630 
1,597 

25,701 

463,244 

154,637 

644,329 






103,227 

25,701 

463,244 

154,637 

644,329 

. 1,261,066 
. 1,190,014 
924 
6,461 

229,205 
681,630 
18,314 
1,331 

75,823 
109,666 
1,623 

1,748 
46,844 
5,353 

10 

373 

422 




2,458,465 

930,480 

187,112 

53,955 

795 

60 

13,516 

799 

1,372 

144 

9,626 
1,695 
908 

49 

3,859 

822 

30 

1 


15 

15 



15,747 

12,373 

4,730 

30 

31 

49.896 

38.896 
128,709 

2,206 

16,321 
18,076 
28,019 
284 

4,323 
4,063 
21,608 

3 

1,122 

1,281 

37 

158 
325 
10,289 

219,707 

62,700 

29,997 

2,440 

10, 722 

7,886 
43,082 
36,975 
148 

14,318 

27,399 

62,646 

3,268 
6,402 
28,635 
12 

799 

248 

21,611 

20 

1,037 
186 
34,320 
157 

88,091 

104,363 

38,317 

22,678 

35,700 

93,905 

94,536 

23 

73,706 

14,766 
74,714 
54 

40,067 
923 

14,488 
58,324 

5,710 
18,197 

3,826 

2,689 
21,270 
30,936 
72 

2,559 
2,002 
33, 705 
27,549 

111 



262,170 

130,524 

96,719 

58,793 

65,926 

87,503 

3,539 

10,116 

657 

43,378 
3,270 
17,730 
275 
131 
14,155 
38 

30,720 
1,076 
7,853 
128 

22,820 

2,003 
793 
55 
383 

7,078 
177 

25,674 

700 

513 

575 

17,613 

198 

13,212 

377 

30,851 
166 

115,404 

78,977 

70,794 

33,309 

45,273 

48,054 
59,931 
6,571 
307 

83,216 

31,810 

4,040 

21 

46,376 

9,230 

1,802 

19,758 
172 
294 

4,220 

1,090 




114,863 

119,087 

57,408 

20,224 

5,310 

10,625 

6,687 
11,918 
29 

46,110 

528 

5,401 
5,014 
6,836 
191 
19,035 
326 

20,231 

2,088 
2,924 
144 
10,193 

4 

14,318 

14,279 

1,000 

2,813 

7,163 
291 

1.238 

13,299 

114 

75,897 

36,803 

35,584 

24,585 

29,930 


Total 






























































































































JAPAN 


135 


Articles and countries. 


Steam boilers and parts, and accesso; ies thereof: 

United Kingdom. 

France. 

Germany. 

Belgium. 

United States... 

Other countries. 


Total. 


Fuel economizers: 
United Kingdom. 

United States. 

Other countries... 


1912 


§499,871 
44,576 


42,760 
150 


587,357 


41,049 

294 

877 


Total. 


Steam turbines: 

United Kingdom. 

Germany. 

United States. 

Other countries... 


Total. 


"Steam engines: 

United Kingdom. 

France. 

Germany. 

Belgium. 

United States. 

Other countries... 


Total. 


Gas engines, petroleum engines, and hot-air engines: 

United Kingdom.. 

France.-.. 

Germany.. 

Sweden. 

United States. 

Other countries. 


Total. 

Water turbines and Pelton wheels: 

United Kingdom. 

France. 

Germany. 

Belgium.. 

Italy. 

Switzerland. 

Sweden. 

United States. 


Total. 

Dynamos, electric motors, transformers, converters, 
and armatures: 

United Kingdom. 

France. 

Germany. 

Belgium. 

Switzerland. 

Sweden. 

United States. 

Other countries.■-. 


1913 


$330,109 


75,057 
44,412 
38,592 


488,170 


70,974 

"2,157 


42.220- 


14,844 
31,942 
23,291 
11,332 


81,409 


109,141 
22,670 
”48,' 832 


180,643 


494,584 
25,791 
83,504 
57,242 
27,731 
6,247 


695,099 


29,571 
3,347 
394,773 


1,405 

7,691 

3,439 

176 


440,402 


339,522 


538,045 
2,090 
3,694 
64 

714,920 

942 


Total.. 

Dynamos, combined with motive machinery: 

United Kingdom. 

Germany. 

Switzerland. 

United States... 

Other countries.. 


Total. 


Incandescent lamps: 
United Kingdom. 

Germany. 

Austria-Hungary. 

United States. 

Other countries... 


Total. 


1,599,277 


321,759 
61,702 


87,584 


471,045 


73,131 


10,198 

13,561 
8,084 


31,843 


109,290 
3,050 
111,400 
47,108 
13,816 


284,664 


288,645 
11,503 
179,447 
48,334 
39,913 
40,284 


608,126 


18,496 
2,193 
306,293 
7,203 
6,533 


10,522 

13,196 


364,436 


390,836 
306 
672,046 
7,484 
24,408 
9,206 
723,954 
1,325 


1914 


§326,976 


95,895 
762 
6,698 
94 


430,425 


40,780 
1,456 


42,236 


1915 


§249,259 
731 
8,644 


26,157 
244 


285,035 


30,696 

261 


10,893 
69,679 
935 


81,507 


122,199 


90,657 
5,174 
8,408. 


226,438 


57,025 
1,022 
58,822 
15,468 
44,054 
6,438 


182,829 


4,489 


102,843 
3,293 
2,335 
7,204 
40, 709 


160,873 


200,528 
741 
393,494 
4,675 
27,824 
45,352 
531,156 
47 


1,829,565 

126,899 
58,138 


129,240 
1,228 


315,505 


1,203,817 

132,787 
10,787 


74,161 


217,735 


30,957 


11,910 


11,910 


25,583 


1,648 


27,231 


21,155 


42,706 
17,736 


81,597 


11,834 

7,338 

8,892 


4,982 
14,853 
10,281 


58,180 


65,287 

19 

16,188 


1,551 
3,503 
163,585 
570 


124,064 


1916 


§504,312 
59,913 
8,964 


95,883 

14,501 


683,573 


47,346 
12,156 


59,502 


10,927 
' 3,9i7 


14,844 


38,002 
40,437 


36,470 
1,179 


116,088 


3,154 
41,972 
1,611 
8,289 
34,517 
411 


89,954 


5,797 

7,030 


1,887 

1,185 

2,363 

189,531 

11,343 

72 

97 

5,328 


3,981 

3,124 

5,189 

191 

21 

318 

195,687 

21,001 

7,942 


1,606 
43,189 


57,622 


47,741 

21,921 

8,766 


7,121 
118 
109,918 
394 



24,094 
123,660 
370 


220,948 














































































































































136 


ELECTRICAL GOODS. 


The following table shows the exports from the United States to 
Japan of various electrical goods in the fiscal years 1913, 1914, 1915, 
1916, 1917, and 1918: 


Articles. 

Years ended June 30— 








1913 

1914 

1915 

1916 

1917 

1918 

Batteries. 

(°) 

$5,906 

$5,744 

$4,232 

$7,816 

$15,585 

Dynamos or generators. 

$848,357 

869,405 

300,830 

88,293 

245,164 

367,103 

Fans. 

10,474 

25,025 

19,431 

11,360 

8,015 

30,144 

Insulated wire and cable. 

(a) 

27,962 

54,786 

7,718 

23,661 

11,584 

Interr iowiring supplies, including 







fixtures. 

(«) 

13,383 

6,640 

15,185 

27,571 

7,455 

Lamps: 

Arc 

3,547 

950 


329 

347 

485 

Carbon 

1,236 

270 



736 


Metal filament. 


1,341 

741 

82 

3,728 

1,351 

Meters and other measuring instru¬ 






ments. 

(a) 

(«) 

16,159 

27,490 

48,054 

345,328 

Motors. 

399,393 

828,664 

303,360 

139,133 

195,188 

469,242 

Telegraph instruments, including 






. 

wireless. 

5,178 

8,106 

160 

14 

26,331 

40,629 

Telephones. 

30,407 

13,671 

5,901 

73,767 

148,383 

186,793 

Transformers. 

(o) 

23,291 

1,193 

4,362 

10,885 

150,551 

All other. 

1,067,246 

483,468 

305,638 

410,598 

1,018,694 

1,731,030 

Total. 

2,365,838 

2,301,442 

1,020,583 

782,563 

1,764,573 

3,357,280 


a Item included under some general classification. 


BOILERS, STOKERS, ETC. 

Most of the Japanese installations of boilers in electrical service 
are of the water-tube type. In the great percentage of cases these are 
British Babcock & Wilcox, though since the war began the slow de¬ 
liveries and the embargoes have made it somewhat difficult to get 
this type and one well-known American water-tube boiler has been 
pushed to some extent. This boiler was said to compete readily in 
price with the British boiler under normal conditions and should be 
able to do an increasing business in the future. 

American engineers with importing houses stated that Japanese 
engineers hated to “take a chance” on something that had not 
already been widely used in the country and for that reason the 
British boiler had become strongly intrenched, but now, since they 
had had an opportunity to get the American boiler in many represen¬ 
tative plants during the war, they believed they would be able in the 
future to maintain considerable business in this line. 

The British boiler company maintains a branch office in Japan and 
is said to have many of its castings made locally. A Japanese water- 
tube boiler is being made in Tokyo, it was reported, but no informa¬ 
tion as to this boiler was available nor were any installations seen. 

Stokers are used in the large steam plants; and since the boilers 
have in the majority of cases been furnished by the British company 
named, the stokers have been of the same make, of the chain type. 
In connection with the better outlook for American boilers, the sale 
of stokers should grow. 

Economizers are used to a large extent and have also been British, 
as may be said generally for the steam-generating end of most of the 
power plants, including feed-water heaters, pumps, and valves and 
fittings generally, though the last two are now being made in Japan. 

































JAPAN. 


137 


ENGINES. 

In the past two large American manufacturers have been very 
active in the steam-turbine field in Japan and appear to have obtained 
a large amount of the business that has been done. British turbines 
also were sold to good extent. Swiss and German makers also were 
working the field very hard and just prior to the war were taking 
considerable business. From now on, nowever, there will be more 
or less serious competition from other turbine builders—home com- 

E etition—and it is doubtful whether American manufacturers will 
e able to sell a great many more turbines in the market, especially 
in the moderate sizes, if the Japanese-made sets are successful. 

Japanese competition has developed within the last year or so, and 
the Mitsubishi Dockyards & Engineering Co., during the summer of 
1917, secured an order for three 10,000-kilowatt (12,500-kilovolt¬ 
ampere) sets for installation in an addition built by the Osaka Light¬ 
ing Co. One of these had been installed by November, 1917, and 
is shown in figure 7; the boiler units for this new set were not yet 
ready and it had not been operated. The two other sets were nearing 
completion at the Nagasaki shops of the company. This steam tur¬ 
bine is built under the patents of the English Parsons Co., and the 
company making it has had many years’ experience in the construc¬ 
tion of turbines for marine use. 

The price at which these three turbines were sold was said to be 
about 25 per cent lower than those of one American company that 
bid for the work, and if the sets operate satisfactorily it is likely that 
Japanese-made turbines will take most of the business open, except 
where American standard types may suit special conditions. Ameri¬ 
can engineers familiar with the local manufacturing conditions were 
somewhat doubtful as to the results that would be obtained from 
the Japanese units when placed in service. 

British high-speed engines have evidently had the widest sale in 
this line of equipment, the Beilis & Morcum engine being much used 
in such small plants as have moderate steam units. Two other 
British engines have been used a little, and there are many German 
units. American engines have sold quite steadily for many years, 
and of late several American poppet-valve sets have been purchased. 
Japanese power-plant engineers like high steam pressures and super¬ 
heat, and this, combined with lower prices for British and German 
units, has made it difficult for standard American engines to compete 
widely in Japan. 

Japanese makers are turning out steam engines and have been for 
some years, but foreign manufacturers appear to have furnished most 
of those used in power-plant work. In 1914 England shipped steam 
engines to Japan to the value of $122,199, Germany to the value of 
$90,657, and the United States to the value of $8,408. In 1916 
England shipped about $38,000 worth, France $40,437 worth and the 
United States $36,470 worth, according to Japanese import statistics. 

While the development of large transmission systems is decreasing 
the field for small steam sets, not to mention the tendency to use gas 
engines, there is a small opportunity, it is believed, for American 
unaflow engines, as the high steam pressure, superheat, and con- 
densing-water conditions wifi make for high efficiency in that type of 
engine. 


138 


ELECTRICAL GOODS. 


While many small petroleum engines are used in Japan, only a 
few are employed in electrical service. Statistics for the end of 1914 
show a total of 160 gas and oil engines of a total rated capacity of 
14,524 horsepower in use by public-service companies, a large per¬ 
centage of which are gas engines. At the end of 1916 private manu¬ 
facturing companies were using 593 petroleum engines, with a total 
capacity of 4,693 horsepower, which gives an average of less than 
8 horsepower per engine. 

In the internal-combustion type of engine, the producer-gas 
engine will be favored for electrical service. There is a large home 
supply of coal and only a limited production of oil, with a consump¬ 
tion tax of yen ($0.50) per koku (47.65 gallons) on kerosene, in 
addition to the import duty. For small isolated power purposes the 
kerosene and crude-oil engine will be sold, though the extension of 
electric systems should limit their use. It is not expected that there 
will be any opportunity for Diesel engines. 

Suction producer-gas-engine installations have been much favored 
by Japanese engineers and appear to have given good satisfaction. 
One reason is possibly the fact that the plants in many cases have 
been small and in the case of central stations have had a steady load, 
due to the flat-rate consumers and to the small power load. Indus¬ 
trial plants have used gas engines to a considerable extent. 

Germany and Great Britain have furnished the majority of the 
gas-producer plants in Japan, with little apparent competition from 
American manufacturers. In view of the fact that American makers 
have not established this type of plant in the United States to any 
great degree, it is hardly probable that they will be able to meet the 
competition of British and German manufacturers in Japan, who 
have a long list of successful installations to back up their sales. 
There is one British installation of 6,000 kilowatts erected by the 
Imperial Government and used to generate pow'er for electric rail¬ 
ways, which is said to operate very satisfactorily. Japanese manu¬ 
facturers are beginning to turn out gas engines and should cut into 
the market to a considerable extent. This fact, in connection with 
the development of large power systems that are extending their 
service over large areas and will probably decrease the number of 
prospects, will result in less opportunity for the future sale of foreign 
gas engines, especially in the smaller capacities. 

WATER WHEELS. 

The water-power resources of Japan are a great asset to the nation 
and were employed to a great degree long before the advent of what 
may be termed the modern industrial era. In the country one finds 
many small native overshot and undershot ^wheels employed in 
driving rice mills and various other kinds of small power-using estab¬ 
lishments. These are seen even w r ithin the limits of the larger cities 
in places, operating in narrow canals along the streets. 

A Government investigation of the water power available in 
Japan proper places it at 2,295,223 horsepower, and the latest data 
show that a total of 402,208 kilowatts’ hydroelectric-station capacity 
is in operation for public-utility, isolated-plant, and Government- 
works service, with about 300,000 kilowatts’ additional capacity 
under construction. As lias been noted, the Government statistics 


JAPAN. 


139 


give the average capacity of a hydroelectric station in Japan as 
1,306 kilowatts. At the end of 1914 the figures issued by the Gov¬ 
ernment give a total of 496 water wheels and turbines, with a total 
capacity of 638,016 horsepower. 

In normal times the Escher-Wyss Co., of Switzerland, the Jens 
Orton-Boving Co., of Sweden, and Yoith & Co., of Germany, have 
secured the bulk of the business, with little going to the United 
States. American prices have been high; in many cases the foreign 
manufacturers underbid American makers by 25 to 40 per cent, the 
latter being the difference in the case of bids submitted in August, 
1917. One vrell-known American wheel got a poor reputation on 
account of the failure of a unit, which was due primarily to faulty 
work on the part of the Japanese erectors. The matter of poor 
erection work has given American apparatus a “black eye” in several 
cases in the Orient, and it is suggested that competent supervision of 
all installations should be arranged. 

While American prices have been generally high on water wheels, 
engineers in the import trade stated that the difference between 
American prices ana foreign prices appeared to be getting less. 
However, unless labor conditions abroad are such that wages go up 
appreciably, makers in the United States can not do a great deal of 
business in competition with European manufacturers. The advent 
of several Japanese water-wheel makers into the field will make the 
future more uncertain in this line. 

GENERATORS, SWITCHBOARDS, AND SWITCH GEAR. 

American manufacturers have furnished the largest percentage of 
generators, switchboards, and switch gear, though the fact that 
foreign makers sold the water wheels was possibly somewhat of a 
handicap and the ability to furnish a complete unit might have 
added to the total business obtained. The Siemens-Schuckert Co. 
(German) and the Allgemeine Elektricitats Gesellschaft were strongly 
in the field and have many large hydroelectric installations. Great 
Britain was third. Sw'eden has sold a small amount of apparatus 
in Japan. 

The greatest future competition in this class of equipment will 
probably come from Japan itself, assuming that the product of the 
Japanese manufacturers gives fair operating results. There are three 
companies that are able to build generators up to about 7,500 kilovolt 
amperes, one of which is financed partly by an American electrical 
manufacturer. American engineers claimed that Japanese generators 
give low efficiencies, but there is no reason why this should be true 
of apparatus turned out by the companies under present conditions. 
Steel is obtained from the United States and Sweden, and the men in 
charge are usually engineers who have had excellent training in 
American electrical works, with the result that the designs are to a 
large extent along American lines. 

While switchboards and switch gear also are turned out by Japa¬ 
nese WT>rks, they have apparently not made the progress in these 
lines generally that they have in apparatus lines. American manu¬ 
facturers should be able to sell higher-voltage equipment and con¬ 
siderable of the instrument and relay requirements for the boards 
that are made up locally. However, the company allied with an 


140 


ELECTRICAL GOODS. 


American electrical manufacturer is making oil switches and switch¬ 
boards and is using the American fittings where it does not have a 
complete line. It would therefore be difficult for an independent 
maker to work up much business in switchboard or switch-gear 
equipment, except along certain lines of instruments, which are dis¬ 
cussed later. Figure 8 shows a German switch-cell group for 11,000- 
volt work in the power house of a large central station. 

TRANSMISSION AND DISTRIBUTION EQUIPMENT. 

Japanese engineers follow American transmission and distribution 
practice quite closely. Line construction, switching stations, and 
substation arrangements are generally similar to those employed in 
the United States, except in a few instances noted. 

According to data available, there were about 14,500 miles of 
aerial u extra-high pressure” lines in operation at the end of 1914. 
This classification covers all lines over 3,500 volts. It is estimated 
that to-day there are about 20,000 miles coming under this head. 
A good percentage consists of lines that would be classed in the 
United States as high-tension. Mention has aleady been made of a 
115,000-volt, 140-mile line transmitting power into Tokyo. 

In figure 9 is shown the tower line of the Kinagawa Power Co., 
which supplies power to Tokyo. The plant equipment in this case 
is German throughout. 

The distribution-line work in Japan follows the American plan of 
using overhead construction to a large degree and pole-top trans¬ 
former installations rather than kiosk installations. The secondary 
voltages are mainly in the neighborhood of 110/220 for lighting. Pri¬ 
mary voltages are 2,300 in many instances, but 3,000 volts is much 
used and will probably be favored in the future. While 60 cycles 
seems to be the most used, 50-cycle plants are not far behind in total 
capacity, and there is a small amount of 25-cycle system. Other fre¬ 
quencies are used only to a small degree. Figures 10, 11, and 12 show 
typical distribution-line construction, the first two along the more 
modern streets in Tokyo and the last down a side street in Yokohama. 

In transmission and distribution work there is not a great deal of 
opportunity for American manufacturers in the future. Steel-tower 
material, high-voltage transformers, and high-voltage oil circuit 
breakers will make up the bulk of purchases from abroad, and within 
certain limits the requirements even in these lines will be filled by 
Japanese manufacturers. 

No wire, either bare or weatherproof, will be imported, and the 
same can be said for such cable as is used for power work. Insulators 
have been made in Japan for some years, and while foreign manufac¬ 
turers have in the past supplied those used for high-tension work, of 
late years Japanese-made designs have taken most of the business 
open, both pin and suspension type insulators being manufactured. 
Insulator pins are made locally for the home requirements and for 
export. The same conditions exist in other pole-hardware lines. 

Wooden poles and cross arms are of native timber, and there is an 
ample home supply. In addition, poles are exported to China. 
Steel structures have been bought abroad for most of the work in 
Japan, but the country is making efforts to obtain its own supply 
of iron ore and its own mills, and thus be in a position to become 


Special Agents Series No. 172 



FIG. 10.—TYPICAL DISTRIBUTION-LINE CONSTRUCTION, 

TOKYO. 



FIG. 11.—TYPICAL DISTRIBUTION-LINE CONSTRUCTION, 

TOKYO. 















Special Agents Series No. 172. 



FIG. 12.—TYPICAL DI ST RI BUT IO N - LI N E CONSTRUCTION, 
IN SIDE STREET, YOKOHAMA. 



FIG. 13—TROLLEY-LINE CONSTRUCTION, TOKYO. 












JAPAN. 


141 


independent of the rest of the world for its requirements in this line. 
Japan will continue to buy large-capacity and higher-voltage trans¬ 
formers from abroad, but its own manufacturers will make the vol¬ 
ume of its requirements. American makers can not land transformers 
in Japan at a cost anywhere near that of the Japanese product in a 
class of goods where cheap labor is so large a factor as it is in trans¬ 
formers. 

Lightning arresters of the multigap type are being manufactured 
in Japan, but aluminum-cell types are not, so far as was learned, 
and there is some business to be done in this line. Primary fuses and 
switches for distribution-line work will be furnished by local makers. 

MOTORS AND CONTROLLING DEVICES. 

The United States, Germany, and the United Kingdom have until 
the last few years furnished most of the requirements in motors and 
controlling devices, but since about 1912 or 1913 Japanese manufac¬ 
turers have been coming into the market more and more. In the 
last two years not many motors have been purchased from foreign 
manufacturers. 

The best Japanese motors normally average about 20 per cent 
below the prices for standard American makes in Japan, while others 
are about 25 per cent lower. When the United States placed an 
embargo on steel, the Japanese manufacturers were unable to get 
electric sheets, and prices rose. At the same time American manu¬ 
facturers sold many machines, one representative saying that orders 
for $60,000 worth of induction motors had been received in three 
weeks, whereas few had been sold in the two years previous. 

While there are a few fair Japanese motors, the writer does not 
believe they will give continuous satisfaction as an average American 
motor will. Several Japanese motor manufacturers will make ma¬ 
chines up to 1,000 horsepower. Under normal conditions American 
manufacturers can not hope to get any motor business in Japan in 
the future, except in a few highly specialized lines in which they have 
had experience and the Japanese have not. 

ELECTRIC ELEVATORS-ELECTRIC-RAILWAY EQUIPMENT. 

There are not many buildings in Japan where elevator service is 
required, the frequent earthquakes causing the erection of low 
structures, as a rule. In recent years a few tall buildings—four to 
seven stories—have been erected and in many such elevators have 
been installed, but the market is very limited. American elevators 
were used in most cases noted and should not have much difficulty 
in securing a good portion of the business open where price is not the 
sole consideration. 

American manufacturers have been getting most of the railway- 
motor business, with a British firm taking a small portion. In con¬ 
trollers, however, this British manufacturer has been more success¬ 
ful and* was said to have furnished about 25 per cent of the total in 
service because the Japanese engineers desire a rheostatic type of 
controller, such as has been developed by this company. Air brakes 
are not used, apparently, except by some interurban lines. 

While the manufacturers of the United States have been successful 
in this field in the past, owing in part to the fact that the Japanese 


142 


ELECTRICAL GOODS. 


agents often aided in financing the electric-railway companies, two 
strong Japanese manufacturers are now beginning to manufacture 
this class of apparatus and will probably give keen competition. 

Considerable line material, such as hangers, has been bought from 
the United States and England, hut Japan is now making much of 
it locally. Trolley-line construction in Tokyo and Kyoto is shown in 
figures 13 and 14, respectively. The modern interurban lines are 
using catenary-line construction, with both pantograph and pole 
trolleys. 

Few locomotives have been used in Japan, but with the industrial 
development it is likely that more will be employed. American and 
German manufacturers have been in the field, but now a Japanese 
plant is beginning to make locomotives, so that there is little future 
for foreign makers in this line. 

HEATING AND REFRIGERATING PLANTS. 

There is no field for steam heating conducted in connection with a 
central station and very little opening for heating systems of any 
type. While there is an increasing number of modern business 
buildings in the large cities, the total volume of such construction is 
small and isolated plants are seldom installed now. What little 
heating is done is supplied to a great extent by a low-pressure local 
heating plant. Outside of the business buildings there is no field 
for heating, the Japanese relying upon charcoal braziers about the 
size of an average pail. 

While there are a few ice plants in Japan, there is no opportunity 
to develop any business in combined plants. American manufac¬ 
turers have furnished a good deal of the refrigerating machinery 
that has been used in the country. 

METERS AND TESTING INSTRUMENTS. 

As was noted in discussing the electrical development of Japan, 
the percentage of consumers supplied through meters is low, and 
consequently the demand for service meters is much less than the 
central-station growth would indicate. There has been a fair trade 
in indicating instruments, but cheap types are being made in the 
country now, which will cause a decrease in imports, though high- 
class testing instruments and switchboard meters will continue to 
be purchased abroad, it is believed. 

The import figures for ammeters and voltmeters show American 
goods leading strongly, owing in part to the fact that a Japanese 
electrical manufacturing company uses for its switchboards meters 
manufactured by an American company that is financially interested 
in it. Outside of that, however, schools and central stations have 
bought high-class American testing instruments to a fair extent, 
probably because many of the engineers in the country have had 
training in the United States and have brought back personal prefer¬ 
ences as to instruments. 

Cheap switchboard-type instruments are being made in Japan 
and sold for as low as $2 to $3, it is said, the development in this line 
being due to Government requirements for instruments on power 
motor installations. The meters are patterned after cheap European 


JAPAN. 143 

instruments. Better-grade instruments are being made to some 
extent, but nothing that can be classed as high-grade. 

There is probably no opportunity for independent American 
instrument manufacturers to sell their product in Japan, except in 
the case of high-class portable and testing instruments, in which 
lines a limited amount of business can be done. 

In wattmeters the United States has had a good trade for some 
years, though to some extent this has been due to the close connec¬ 
tion between a local Japanese manufacturer and an American elec¬ 
trical manufacturer, already mentioned. American service meters 
are assembled in Japan to a small extent. A German manufacturer 
is said to have had a plant in Japan before the war, but this is nom¬ 
inally Japanese now. Meters made in this plant were seen on sale 
in a few places, but their prices were high and it did not appear 
that the factory was doing much. Probably it was primarily an 
assembling plant. 

Swiss meters have been coming into favor since the German source 
of supply was cut off, the Landies & Gyr make being used to an in¬ 
creasing extent. The demand is mainly for alternating-current 
meters, and it may be generally stated that there is no market for 
direct-current meters. 

In normal times American alternating-current meters cost more 
than foreign makes but are better, as was the case in other markets 
abroad, though at the present time American meters are meeting 
foreign prices more closely. Prior to the war a 3-ampere, 100-volt, 
single-phase house-service meter made by Landies & Gyr cost 15 
yen ($7.50), delivered at a town not far from Osaka. Now this 
same meter costs 22.70 yen ($11.35) delivered, and an American 
better-quality, 5-ampere meter is being delivered there for the same 
price. The Swiss makers, however, turn out a three-phase meter for 
balanced load that sells for 30 yen ($15), delivered at this town, in 
the 10-ampere, 220-volt size. American meters are unable to meet 
the competition of this type. This Swiss meter is very light and is 
by no means rugged, but it is said to give good service and to main¬ 
tain its accuracy. Its lightness makes the duty low, the tariff being 
a fixed amount per 100 pounds. 

While American and Swiss manufacturers are doing a good meter 
business under existing conditions, it is hardly likely that they will 
be able to make so good a showing when the German-Japanese com¬ 
bination is again aide to compete. This will tend to hurt most the 
American meter manufacturers that have no local manufacturing 
connections. 

In connection with the sale of meters in Japan, certain Govern¬ 
ment restrictions must be observed. Before a w-attmeter can be 
used in Japan, the type must be approved by the Government, at a 
fee of 75 yen ($37.50) for each type submitted for approval. All 
service meters to be used in the country must be tested and sealed 
by the Government, which maintains testing stations for this purpose 
at Tokyo and Osaka. The fee for this is 3 yen ($1.50) per meter. 

This latter system of testing meters at central points and then 
shipping them out is open to criticism from an engineering point of 
view. It does not accord with American standards, where the desire 
is to make all tests under installed conditions and to avoid handling 
the meter after it has been tested. 


144 


ELECTRICAL GOODS. 


LAMPS. 

There is not much opportunity for arc lamps. Street lighting is 
the greatest field for that kind of lamp, and in Japan there are not 
many wide streets, so that the demands in this line are limited. The 
incandescent lamp is more suitable for the average narrow-street 
lighting conditions, where low-candlepower units are all that are 
required. Again, any great use of arc-lamp street lighting would be 
too costly for the average Japanese city. The use of arc lamps for 
indoor lighting has not developed to any extent, because most of the 
large stores and other places where such illumination could be con¬ 
sidered have been built in late years, when the incandescent lamp 
was being brought to higher standards of efficiency and the arc lamp 
was being pushed out for interior work. Display lighting, such as 
installations outside of theaters, offers a small opportunity for the 
sale of flaming arc lamps, but here too the tendency is toward in¬ 
candescent lamps, and the gas-filled tungsten unit is displacing the 
arc in favor. There appears to be little future business open in arc 
lamps. 

For some years prior to the war, most of the lamps used in Japan 
were made in that country, Germany furnishing the bulk of those 
that were imported. 

The import figures show that Germany sold many lamps in Japan 
in spite oi the local manufacture, but a certain percentage of the total 
was in the gas-filled type, which has not been successfully turned 
out in Japan at a competitive price. An American engineer who has 
been in the Orient for some years said furthermore that the ordinary 
German lamps in the market were superior to the Japanese lamps, 
claiming that the latter seemed to blacken quickly. The German 
lamps were probably very good or they could not have secured the 
business they had at the time the war broke out. Austria, too, was 
coming into the field at that time, as the figures indicate. 

American manufacturers have not gone directly into the market 
because a large American manufacturer is making lamps in Japan 
through companies either controlled or licensed. American lamp 
manufacturers can not hope to do any business in Japan, since the 
Japanese manufacturers have become strongly intrenched and are 
not only supplying their home market but are large exporters. As 
an indication of the local manufacturing conditions, it is significant 
that while Germany in 1914 sold Japan $189,531 worth of incandescent 
lamps, the United States in 1916 sold in that country $217,836 worth 
of filaments for incandescents, with other countries also furnishing 
large amounts. In the miniature-lamp line, Japan is endeavoring 
to take the place of Austria, and will no doubt supply a fair amount 
of the trade. Buying from abroad is out of the question. 

BATTERIES AND BATTERY PLANTS. 

There is no opportunity to sell wet cells or dry batteries in Japan, 
as these are made locally and American products in this class can not 
be delivered at a competitive price. Many cheap dry cells and one 
fair make are being turned out in the country. While American 
cells can compete with Japanese batteries in China, for instance, on a 
price-quality basis, they can not pay freight and duty and do so in 
Japan. 


JAPAN. 


145 


In storage batteries of various types also, Japan is supplying its 
home needs now to a large extent. The volume of such business in 
the past has been with England, as the import figures indicate. 

Storage batteries are used in traction work, train lighting, excita¬ 
tion work, and automobile lighting and ignition. So far as was 
learned, there are no electric vehicles in service in Japan. Outside 
of large traction batteries that may be used, Japan will probably be 
a strong competitor for all business open, though it was said that 
the local-made plates would not stand much service. The only line 
in which American manufacturers can do any business is automobile 
work. Even this is doubtful, and since American prices are high, it 
depends upon how poor such Japanese batteries are. 

There is practically no market for farm-lighting plants in Japan 
proper, since electric service is extended quite broadly throughout 
communities that can afford to make use of it, and there are few 
well-to-do people living away from fair-sized cities. 

TELEPHONE AND TELEGRAPH EQUIPMENT. 

As far as the United States is concerned, the trade in telephone 
material and equipment is complicated by the fact that an American 
company making that kind of goods is financially interested in a 
Japanese telephone-manufacturing plant, and sends out certain parts 
to this plant. The American company also has branch plants in 
England and on the Continent, one of the most important of which 
has been closed as a result of the war. This plant in the past made 
up goods for export and it is likely that a part of this trade has been 
diverted througn the American and Japanese plants, accounting in 
part for the large growth in telephone exports to Japan shown in 
the table on page 136. The trade returns of Japan do not corre¬ 
spond very well with the American statistics, probably because of 
the difference in the periods covered by fiscal years and of variations 
in the method of classification. 

Outside of the trade resultant upon the financial connection be¬ 
tween the American company and its Japanese plant, it is not likely 
that there will be any opportunity for manufacturers of this class of 
materials in the United States to do much business in Japan. Be¬ 
sides the American-Japanese company referred to, which is tne largest 
in the country, three or four Japanese factories are engaged in this 
class of work, and the Government, which controls the telephone 
systems, will not be likely to buy telephone equipment or supplies 
from abroad when somewhat similar goods are obtainable in Japan, 
Where part of the equipment must come from abroad and part can 
be obtained direct from a local manufacturer, the American-Japanese 
factory will naturally be in a better position to bid than will any 
outsider. 

Figure 15 shows a Japanese-made telephone as installed in the 
rooms of a prominent hotel in a large Japanese city. 

Telegraph and radio equipment also is made in Japan, and foreign 
manufacturers will not be able to sell any such goods except in the 
case of highly special parts. The export statistics of the United 
States show a large increase in 1917 and 1918 in goods classified as 
“ telegraph instruments (including wireless apparatus),” which may 

70005°—18-10 


146 


ELECTRICAL GOODS. 


be accounted for in part by the shipment of such goods to Japan for 
use on vessels under construction for foreign countries. 

Wires and cables for telephone and telegraph work are all made 
locally, except submarine cable, which is still imported to some 
extent, though a Japanese manufacturer is making such cable also. 
There is no opportunity for foreign manufacturers except in the 
submarine-cable line, and in this line American manufacturers have 
not been able in normal times to compete with British manufacturers. 
German cable makers were getting a good deal of this business 
just before the war. 

WIRING SUPPLIES. 

All electrical work in Japan is under the jurisdiction of the Depart¬ 
ment of Communications and close supervision is maintained. The 
department determines the standards and issues wiring regulations. 
It holds the central stations responsible for wiring and recognizes 
them only. The electric companies generally turn the work over 
to wiring contractors but maintain their own inspection service 
and see that all work conforms to the requirements of the Depart¬ 
ment of Communications. 

The bulk of the wiring in Japan is done on cleats or small knobs 
and is open; concealed Knob and tube work is also done. Wood 
casing is used a little, and conduit is being employed in large new 
buildings. Tumbler, snap, and rotary switches are used; the snap 
switch is said to be growing in favor. About 80 per cent of the 
sockets in service are of the screw type. 

The wire used for interior work is of two grades, varying in the 
thickness of the rubber insulation. The lower grade is required to 
test 400,000 ohms per ri (2.45 miles) after 24 hours’ immersion, the 
test calling for one minute’s electrification at 100 volts at 15° C. 
The better-grade wire must show an insulation resistance of 100 
megohms per ri, when tested under similar conditions. Both grades 
are used for wiring, but only the higher-test wire may be employed 
for concealed work. The wire may generally be classed as low 
grade, and an unusual feature of its manufacture is that a band 
of rice paper is wrapped on in lieu of cloth tape to hold the rubber 
compound in shape until it has been vulcanized. 

There are no specifications as to the thickness of conduit, the regu¬ 
lations providing that it must have suitable mechanical strength 
and that it must give continuous electrical conductivity throughout. 
Conduit must be grounded. Both slip-joint and screw-joint conduit 
is employed (the latter usually), and the weights are generally about 
those of British standards. 

Drop-cord lights are those mostly installed, fixtures being used only 
to a small extent in foreign-type homes and business houses. There 
is some small opportunity for the sale of higher-class American 
wiring supplies, such as flush push switches, receptacles, fancy shades, 
semi-mdirect lighting units, etc., for use in new modern-type build¬ 
ings; but the market is very limited and Japanese makers will soon 
be manufacturing these articles themselves. They are already 
making plain semi-indirect lighting units, consisting of an opal bowl 
swung from a ceiling canopy by light chains, but the units so far seen 
have been of poor quality. 


JAPAN. 


147 


In wiring supplies in general local manufacturers will supply all 
the ordinary requirements; there is a market only for special articles 
that are not made in Japan because of the limited demand, such as 
flush fittings, or those that can not be made because of patent 
protection. This means that local manufacturers will supply knobs, 
cleats, tubes, wire, tape, rosettes, sockets, switches, entrance fuse 
blocks and fuses, shades, and plain fixtures of the direct, indirect, 
and semidirect types for the average class of work that is demanded. 
When the owner wishes to make an installation out of the ordinary 
there is an opportunity to sell foreign goods. 

DOMESTIC APPLIANCES-ELECTRIC FANS. 

Outside of kettles possibly, there is very little use of electric 
heating appliances in Japan, and as a matter of fact these and various 
other heating appliances are being made in Japan for export. Prac¬ 
tically no foreign heating devices were seen in local electrical shops 
in the larger Japanese cities, and only kettles and irons of native 
make were on display. Development in the use of heating appli¬ 
ances does not appear to be possible for some time to come, thoug;h 
it would seem that electric radiators are adapted to the climatic 
conditions of a good part of the country. 

The electric fan is the only domestic and office appliance that is 
used to any extent in Japan. Home conditions are against the 
use of labor-saving devices in the household, and in offices the labor 
situation is such that none are demanded. Fans, however, are seen 
everywhere, and as a result are being made in large numbers in 
Japan. Both desk and ceiling fans are made, but the latter have not 
yet been developed to the same extent as the former, nor is there a 
great demand for them. Foreign manufacturers will probably sell 
fans of a few special sizes for a time. In the usual portable types, 
American manufacturers now can hardly compete in Japan in 
view of the volume of cheap goods turned out. In general design 
the better Japanese fans are similar to those made in the United 
States. One feature often noted was that a wire netting was fitted 
over the guard more effectively to prevent anything from being 
drawn into the path of the blades. This device is used evidently 
because there are no chairs in a Japanese home or shop and the fan 
is either on the floor or close to it, where a person’s clothes in pass¬ 
ing might otherwise get caught. 

OTHER ELECTRICAL GOODS. 

One class of goods that will probably find a market in Japan for a 
time is those that are used for or in connection with electric signs. 
The Japanese appear to be taking up electric signs to an increasing 
extent and appreciate the use of electricity in advertising. Figure 16 
shows a typical large electric sign seen in Osaka. It is believed that 
patented types of sign sockets, flashers, etc., will find an increasing 
market. Fittings for outline lighting should have a small sale also, 
and some flood lighting was seen in operation in a large city, but a 
Japanese electrical manufacturer is making units for this latter class 
of service. Miscellaneous devices, such as electric bells and annunci- 


148 


ELECTRICAL GOODS. 


ators, are all made locally. While most of those seen were very crude, 
there were a few fair replicas of American and German types at low 
enough prices to make it difficult for American goods to compete. 
At least one company in Japan makes closed-circuit fire-alarm 
systems, and it is not likely that any foreign manufacturer can take 
any of the limited business in that field. 

CONDUCT OF TRADE WITH JAPAN. 

BANKING FACILITIES. 

The International Banking Corporation of New York, the only 
American bank in Japan, has branches at both Yokohama and Kobe, 
of which British managers are in charge. Other foreign banks with 
branches at either Yokohama or Kobe, or both, are the Hongkong 
and Shanghai Banking Corporation, the Chartered Bank of India, 
Australia, and China, the Russo-Asiatic Bank, the Mercantile Bank 
of India, and the Swiss Bankverein. The Deutsch-Asiatische Bank 
also operated in Japan before the war. 

There are a number of strong Japanese banking systems, of which the 
Bank of Japan, the Yokohama Specie Bank, the Fifteenth Bank, and 
the Mitsui Bank are probably the largest. Several Japanese banks 
have extensive foreign branch systems, the Yokohama Specie Bank, 
for instance, having branches or agencies in New York, San Francisco, 
Honolulu, and Los Angeles, in the United States, so that Japanese 
shippers are able to transact their business abroad through their 
home banks. This bank has recently amended its charter so as to 
be able to loan money to Japanese citizens in foreign lands and has 
granted a loan to a Japanese sugar merchant in Hawaii. 

MONETARY SYSTEM-WEIGHTS AND MEASURES-LANGUAGE. 

Japan’s currency is on a gold basis, with the yen as the unit. This 
is worth 49.8 cents in United States money, or roughly 50 cents. 
Usually the exchange between the United States and Japan has been 
slightly in favor of the dollar, but during the last year the reverse 
has been true, owing to the large volume of American imports of 
Japanese products as against American exports to that country. 
The yen is decimally divided into 100 sen, with 1, 2, 5, 10, 20, and 50 
sen pieces in circulation. 

Japan uses its old system of weights and measures to a large extent, 
though English miles are employed for railway work and the metric 
system is used in scientific, military, and chemical work. The 
linear measures are the ri, cho, and ken, the table being as follows: 
Six shaku equal 1 ken; 60 ken equal 1 cho; 36 cho equal 1 ri. The 
shaku equals 0.994 foot; the ken is therefore equal to 5.96 feet, the 
cho to 358 feet, and the ri to about 2.44 miles. The unit of area is 
the tsubo, which is 1 ken square and equivalent to 3.95 square 
yards; 1 acre is equivalent to 1,225 tsubo. The tsubo is generally 
the unit employed in city lot and mining descriptions, while for 
agricultural land the tan (about \ acre) and the cho (2.45 acres) 
are employed. For capacity the koku is the unit mostly employed 
in engineering work apparently; this is equivalent to 5.12 American 
bushels, or 47.65 liquid gallons, and is divided into 10 to; the to 
is divided into 10 sho (1.64 quarts or 1.91 liquid quarts), and the 


Special Agents Series No. 172. 



FIG. 14.—TROLLEY-LINE CONSTRUCTION, KYOTO. 



FIG. 15.—TELEPHONE IN JAPANESE HOTEL. 











Special Agents Series No. 172, 



FIG. 16.—ELECTRIC-SIGN INSTALLATION IN JAPAN. 



FIG. 17.—SMALL JAPANESE LAMP FACTORY 



















JAPAN. 


149 


sho is divided into 10 go. Weights in Japanese statistics are generally 
expressed in momme, kin, or kwan. A momme equals approximately 
0.13228 ounce avoirdupois and a kin is equivalent to 1.32277 pounds 
avoirdupois, while a kwan is about 8.26733 pounds avoirdupois; 
1,000 momme make one kwan and 160 momme make a kin. 

Japan differs from China in having a universal language. Foreign 
languages, especially English, are taught in the schools. One can 
get along almost anywhere in Japan with a knowledge of English, 
though at times it is advisable to carry on conversation by writing, 
because many students who have learned to read English in schools 
and do so readily do not have sufficient practice in speaking it. In 
every lay business, one has no difficulty in getting along with Eng¬ 
lish, though where any one expects to spend a few years in the country 
he should by all means learn to speak the language and possibly to 
read it to some extent. 

One of the things that greatly impressed the writer during his 
stay in Japan was the universal desire to learn English. A Yoko¬ 
hama rickshaw man waiting for the return of his fare was found 
deeply engaged in an English primer in one instance; the conductor 
on a street car in Nikko, while waiting at the end of the line, pulled 
out of his pocket a battered Third Reader to match the writer’s 
phrase book, and hotel boys were always asking, “How you say 
this?” In this respect Americans could imitate the Japanese to 
good advantage. English will “get one by” almost anywhere in the 
world, but in selling goods abroad methods that will merely “get us 
by” should be discarded. 

CUSTOMS TARIFF. 

The tariff in Japan is drawn so as to protect the industries of that 
country, and many raw materials or partly manufactured materials 
not produced in the country are entered free of duty. The same 
applies to goods not as yet successfully manufactured in Japan, 
while, on the other hand, there is an ample duty on such things as 
are being made in the country. As typical of the tariff, submarine 
telegraph or telephone cables, which have not yet been manufactured 
in Japan to any extent, are admitted free of duty, while ordinary 
rubber-covered wire pays a duty of 5.46 cents per pound. The duty 
also protects electrical-machinery manufacturers of the types and 
classes of apparatus most likely to be made locally to any extent. 
For instance, motors, transformers, etc., weighing not more than 25 
kilos (55.1 pounds) pay a duty of $9.79 per 100 pounds, whereas 
the duty decreases sharply for larger pieces of apparatus, being only 
$3.39 for such as weigh from 1,000 to 5,000 kdos (2,205 to 11,023 
pounds). 

The following figures show the rates of duty in Japan on electrical 
goods of different kinds. Duty is levied on net weight except as 
otherwise specified. 

Ammeters and voltmeters.$23.53 per 100 pounds. 

Batteries: . , . 

Storage batteries..20 per cent ad valorem. 

Dry batteries.$5.20 per 100 pounds. 

Other..25 per cent ad valorem. 

Batteries, parts of (except carbons for electrical use): 

Flppfrodps . 20 per cent ad valorem. 

Other.° ae .. -.! -......!....... - - - -... 25 per cent ad valorem. 








150 


ELECTRICAL GOODS. 


Bells, call.. 

Boilers, steam..... 

Carbons for electrical use, Hot otherwise provided for. 

Controllers for electric cars. 

Dynamos, electric motors, transformers, converters, and 
armatures, each weighing: 

Up to 25 kilos (55 pounds)... 

25-50 kilos (110 pounds). . . 

50-100 kilos (220 pounds).. 

100-250 kilos (551 pounds)... 

250-500 kilos (1,102 pounds). 

500-1,000 kilos (2,205 pounds). 

1,000-5,000 kilos (11,023 pounds). 

More than 5,000 kilos.. 

Dynamos combined with motive machinery: 

Combined with steam turbines. 

Combined with steam engines, each weighing— 

Up to 250 kilos (551 pounds). 

250-500 kilos (1,102 pounds). 

500-1,000 kilos (2,205 pounds). 

1,000-2,500 kilos (5,512 pounds). 

2,500-5,000 kilos (11,023 pounds). 

5,000-10,000 kilos (22,046 pounds). 

10,000-50,000 kilos (110,230 pounds). 

50,000-100,000 kilos (220,460 pounds). 

More than 100,000 kilos. 

Combined with gas, petroleum, or hot-air engines, each 
weighing— 

Up to 250 kilos (551 pounds). 

250-500 kilos (1,102 pounds). 

500-1,000 kilos (2,205 pounds). 

1,000-2,500 kilos (5,512 pounds). 

2,000-5,000 kilos (11,023 pounds). 

More than 5,000 kilos. 

Other. 

Engines: 

Steam engines, not otherwise provided for, each 
weighing: 

Up to 250 kilos (551 pounds). 

250-1,000 kilos (2,205 pounds). 

1,000-5,000 kilos (11,023 pounds). 

5,000-50,000 kilos (110,230 pounds). 

50,000-100,000 kilos (220,460 pounds). 

More than 100,000 kilos. 

Gas, petroleum, or hot-air engines, each weighing: 

Up to 100 kilos (220 pounds). 

100-250 kilos (551 pounds). 

250-1,000 kilos (2,205 pounds). 

1,000-2,500 kilos (5,512 pounds). 

More than 2,500 kilos. 

Steam turbines. (See Turbines, steam.) 

Feed water heaters. 

Fuel economizers. 

Filaments for incandescent electric lamps. 

Lamps, lanterns, and parts thereof: Incandescent electric 
lamps— 

With carbon filaments: 

Not exceeding 32-candlepower. 

Other. 

Other. 

Mechanical stokers. 

Posts and other material for suspending electric lines, not 
otherwise provided for: 

Posts and parts thereof. ;... 

Other: 

Iron. 

Other. 


$16.56 per 100 pounds. 
$1.39 per 100 pounds. 
$3.12 per 100 pounos. 
$3.01 per 100 pounds. 


$9.79 per 100 pounds. 
$6.02 per 100 pounds. 
$5.27 per 100 pounds. 
$4.89 per 100 pounds. 
$4.52 per 100 pounds. 
$3.76 per 100 pounds. 
$3.39 per 100 pounds. 
$2.64 per 100 pounds. 

20 per cent ad valorem. 

$5.72 per 100 pounds. 
$3.99 per 100 pounds. 
$3.84 per 100 pounds. 
$3.31 per 100 pounds. 
$3.16 per 100 pounds. 
$2.71 per 100 pounds. 
$2.41 per 100 pounds. 
$2.03 per 100 pounds. 
$1.96 per 100 pounds. 


$6.63 per 100 pounds. 
$3.99 per 100 pounds. 
$3.84 per 100 pounds. 
$3.09 per 100 pounds. 
$2.48 per 100 pounds. 
$2.18 per 100 pounds. 
20 per cent ad valorem 


$6.02 per 100 pounds. 
$3.39 per 100 pounds. 
$3.01 per 100 pounds. 
$2.26 per 100 pounds. 
$1.66 per 100 pounds. 
$1.51 per 100 pounds. 

$11.29 per 100 pounds. 
$7.53 per 100 pounds. 
$3.39 per 100 pounds. 
$2.64 per 100 pounds. 
$1.88 per 100 pounds. 

$2.67 per 100 pounds. 
$0.60 per 100 pounds. 

20 per cent ad valorem. 


$4.43 per 100. 

$10.46 per 100. 

40 per cent ad valorem. 
$1.60 per 100 pounds. 


$0.70 per 100 pounds. 

$1.64 per 100 pounds. 
$5.27 per 100 pounds. 




















































JAPAN. 


151 


Sockets and shade holders. $24.32 per 100 pounds. 

telegraph and telephone instruments, and parts thereof, 

not otherwise provided for. 20 per cent ad valorem. 

turbines: 

Steam..20 per cent ad valorem. 

Water, including Pelton wheels, each weighing— 

Up to 500 kilos (1,102 pounds). $9.79 per 100 pounds. 

500-1,000 kilos (2,205 pounds). $3.39 per 100 pounds. 

1,000-5,000 kilos (11,023 pounds). $3.01 per 100 pounds. 

5,000-10,000 kilos (22,046 pounds). $2.64 per 100 pounds. 

More than 10,000 kilos..$2.03 per 100 pounds. 

Wattmeters. . $15.02 per 100 pounds. 

Wire, insulated electric: 

Armored with metals— 

Submarine telegraph or telephone cables.Free. 

Other- 

Combined with india rubber or gutta-percha.. $4.14 per 100 pounds. 

Other.$2.07 per 100 pounds. 

Other- 

Flexible cords: 

Combined with silk.25 per cent ad valorem. 

Other. $6.78 per 100 pounds. 

Other: 

Combined with india rubber or gutta-percha.. $5.46 per 100 pounds. 
Other. 25 per cent ad valorem. 


TERMS-BUSINESS METHODS—PACKING. 

American electrical goods are being imported into Japan to a great 
extent by a few large organizations in close touch with the manu¬ 
facturers, and the question of terms between the manufacturers and 
the importers has not been the factor that it has in other countries. 
The trade is handled in one case by a branch office, but most of the 
goods have been sold through a few large import and export houses. 
Japanese houses, Mitsui & Co. and Takata & Co., which are widely 
connected in Japan and have unusual organizations, represent, 
respectively, two of the largest American electrical manufacturers, 
and a few large American and British import and export houses act 
as agents for various electrical interests. Under the conditions 
existing the matter of terms is one between the local importer and his 
New York office, rather than between a manufacturer and an 
importer. 

Where electrical manufacturers wish to make connections with 
Japan, they can probably do so through some American house that 
has been established there for years and has its main office in the 
United States, though few houses are equipped to take on technical 
lines. Where an agency is placed with a purely local Japanese firm, 
under the present conditions, the manufacturer is justified in asking 
for cash against shipping documents at New York. This, of course, 
does not apply to old-established firms with connections abroad. 

The import houses in Japan extend fair credit to Japanese buyers, 
60 days or somewhat longer being common. In power-plant equip¬ 
ment fair average contract terms were said to be as follows: 50 per 
cent on delivery of all parts of shipment; 30 per cent after erection; 
20 per cent within 3 weeks after equipment has been placed in opera¬ 
tion. These terms are for buyers who are known to the importer as 
fairly responsible; in other cases, bargain money is required. Theie 
are no organizations similar to Dun or Bradstreet in Japan and the 
import houses have to maintain their own credit bureaus. 
















152 


ELECTRICAL GOODS. 


It may he of interest here to note that Japanese electrical manu¬ 
facturers require Australian and New Zealand importers to pay for 
goods f. o. b. port of shipment in Japan. 

Importers stated that some Japanese buyers are not very scrupulous 
in holding to an agreement in the face of a drop in prices, and in such 
cases it is often necessary in certain lines to compromise with them. 
It has happened also that plans submitted by foreign houses have 
been given to Japanese contractors to follow. Instances of this 
practice were reported in steam-piping work, and as a result one 
American house will no longer submit anything but rough layouts 
when bidding on jobs. 

In central-station equipment Japanese buyers are said to ask some¬ 
times for practically impossible guarantees, and then when the job 
is done to come back on the importers. Asking for bids to be let on 
a certain date, and then, instead of letting the contract as stated, 
‘‘peddling” the lowest bid among the various bidders is said to have 
been done by some power companies. 

The close relations between the American manufacturers and 
their representatives probably account for the fact that no com¬ 
plaints were heard as to the business methods of American elec¬ 
trical manufacturers. On the other hand, the statement was 
made by an American import house that the manufacturers of the 
United States are better in this regard than British or Continental 
manufacturers with whom it had dealings. American catalogues in 
lines handled by its engineering department had been more specific 
and complete than those of foreign manufacturers. 

The packing of American electrical goods was also commented on 
favorably. Only the larger American electrical manufacturers appear 
to be doing much business in Japan, and as a rule they have given 
careful attention to packing methods for over-sea shipments. An 
American engineer commented upon the difference in the packing of 
certain American and British meter shipments. Those from the 
United States came four in a box and arrived in perfect condition; 
the British meters came 36 in one case, and, though the case itself 
was intact, the contents were badly battered. 

REPRESENTATION-TRADE-MARKS AND PATENTS. 

Except in a few lines there is, under normal conditions, little oppor¬ 
tunity for American manufacturers to sell any electrical goods in 
Japan in which any volume of business is open. However, where it 
is deemed advisable to place agencies in Japan, it is strongly recom¬ 
mended that the representative be American, if possible, and other¬ 
wise European. One of the established houses probably can best 
handle such representation. If technical men are required and these 
are not on the staff of the import house, factory men can be sent 
out to work through the importers. The future of the business does 
not seem to warrant any great expenditure in developing an organ¬ 
ization to cover this market. Tokyo is the best location for the main 
office of the representatives of American electrical-goods manufac¬ 
turers; Kobe is probably next best and should have a branch office, 
if possible. 

The patent and trade-mark situation in Japan has been a source 
of irritation to American manufacturers. Standard American articles 
have been reproduced locally, sold under the American brand, and 


JAPAN. 


153 


passed off as American goods. Standard British goods, too, have 
been copied bodily, even to the slogan “ British-made with British 
labor / 1 These conditions are due in many cases to the neglect of 
the manufacturers to observe the regulations. The international 
agreement regarding patents and trade-marks, to which Japan is 
signatory, provides that a citizen of any country is to have a priority 
oil2 months after the date of application for patents in his own coun¬ 
try in which to file application in other countries subscribing to the 
agreement. In the case of trade-marks, the priority period is 4 
months. Many American manufacturers have failed to observe the 
rule and later have learned that someone else had patented their 
inventions in Japan. As far as was noted there were few such cases 
in the electrical field, though there have been instances of infringe¬ 
ment confined to a few lines. 

Another feature of Japanese patents is that anything is considered 
to be “not new” if it has been publicly known or publicly used prior 
to the application, or if it has been described in publications dis¬ 
tributed in the Empire prior to the application “to such an extent 
that the description can easily be put into practice.” 

The situation therefore suggests that American manufacturers 
should protect their inventions in Japan as promptly as possible. 
The requirements are that the application must be translated into 
Japanese and that a foreigner not resident in Japan must employ an 
agent, resident legally in Japan, to apply for a license or for registra¬ 
tion. This applies generally for patents, trade-marks, etc., in con¬ 
nection with which certificates of nationality must be presented. 

Patents are granted for a period of 15 years, with a possible exten¬ 
sion of 3 to 10 years, “if, in the case of an important invention, a 
suitable profit could not for satisfactory reasons be reaped within 
that time.” For a patent, the application fee is 5 yen and the 
registration fee 230 yen, the latter payable in installments over the 
period of the patent’s life. Utility models are registered for a 
period of 3 years, but this term may be extended by 3 3 ^ears and 
further by 4 years, upon application. The application fee is 2 yen 
and the registration fee 15 yen, payable at once. Design patents 
have a life of 10 years, the application fee being 1 yen and the registra¬ 
tion fee 17 yen, payable in annual installments. Trade-marks are 
registered for a term of 20 years and the registration is renewable. 
The application fee is 3 yen and the registration fee 20 yen, payable 
at once. 

The Japanese patent law provides that a patent may be revoked 
when the patentee does not work or exploit his invention in the 
Empire within 3 years from the date of his letters patent or when he 
discontinues it for more than 3 years. A protest may be lodged 
against such revocation. 

Classed as unregisterable are trade-marks similar to the Imperial 
chrysanthemum crest, the national flag, or the insignia of the Bed 
Cross. The same applies to trade-marks that are identical with or 
similar to marks already registered or when intended to be applied 
to identical goods, and to marks that have lost validity not more than 
one year before. Trade-marks may be canceled when, without proper 
reasons, the owner of a trade-mark ri<dit has failed to use his trade¬ 
mark within the Empire for more than 1 year from the date of 
registration or has discontinued the use thereof for more than 3 years. 


154 


ELECTRICAL GOODS. 


MANUFACTURE OF ELECTRICAL GOODS IN JAPAN. 

For some years there has been considerable electrical manufactur¬ 
ing in Japan. The section devoted to the electrical development of 
the country shows that there is a large home market upon which 
to build up the industry, and, with the dense population, economic 
conditions favor manufacturing. The better-known electrical manu¬ 
factories and those in which American capital is invested have been 
in operation for 10 to 20 years, but it is since the war began that the 
greatest development has taken place. The growth was due both 
to the greatly increased home demand for power and other apparatus 
needed to equip the home industries, which were expanding to take 
care of the war demands, and to the direct shipments to foreign 
markets of electrical goods, of which the war and shipping conditions 
had brought about a scarcity throughout the Pacific countries. 

To meet the sudden call from all sides for electrical goods of the 
qualities they were accustomed to use, importers sent inquiries to the 
United States and to Japan. In many cases they were unable to 
obtain any of the goods they wanted in the United States, and if they 
asked an American manufacturer to make them something accord¬ 
ing to their standards, the manufacturer sometimes replied by offer¬ 
ing the importers his standard product. In Japan, there were 
plenty of small shops or plants that would make up anything in 
accordance with a sample submitted. The conditions in Japan 
therefore developed many very small electrical plants making a 
variety of electrical supplies, in which cheap labor is the prime factor 
rather than machinery. No power machinery at all is used in many 
of these small places, which might almost be termed household 
industries rather than factories. 

JAPANESE EXPORTS OF ELECTRICAL GOODS. 


The following table shows the exports to various countries of 
electrical goods made in Japan, for 1910, 1913, 1914, 1915, and 1916. 
Conversions were made at the rate of $0.50 to the yen. 


Countries and articles. 

1910 

1913 

1914 

1915 

1916 

Argentina: Electric machinery and parts. 





$425 

8,640 
82,827 
167,246 
406,559 

8,499 
37,138 
64,536 
613 

186,312 

24,002 

50,562 

154 

7,548 

591,605 
245,116 
175,027 
24,033 

13,227 

2,446 

7,484 

76 

Asiatic Russia: 

Copper wire. 


$59 

$1,794 

$14,348 

21,379 

10,784 

35 

6,014 
2,105 
32,733 
60 

54,902 

4,462 

12,640 

120 

17 

76,297 

199,673 

127,270 

13,799 

781 

5,174 

1,895 

81 

Insulated electric wire. 


Electric machinery. 


846 


Telephones. 



Australia: 

Copper wire. 


48 


Insulated electric wire. 


1 

7,590 

Electric machinery and parts. 

Telephones. 


4,782 

British India: 

Copper wire... 

$166 


804 

25 

4,425 

30 

Insulated electric wire. 


Electric machinery. 

Telephones. 

247 

9,337 

Chile: Electric machinery and parts. 



China: 

Copper wire. 

26,576 
18,616 
26,102 
7,539 

69,113 

47,023 

124,420 

11,955 

245 

83,288 
65,859 
134,139 
3,197 

77 

91 

724 

Insulated electric wire. 

Electric machinery and parts. 

Telephones. 

Dutch East Indies: 

Copper wire. 

Insulated electric wire. 


Electric machinery. 

Telephones. 

213 

102 


































JAPAN. 


155 


Countries and articles. 

1910 

1913 

1914 

1915 

1916 

France: 

Copper wire. 




$1,390 

6,525 

10,306 
30,290 
15,729 
26 

38,285 
96,330 
75 007 


Insulated electric wire. 




Oldo, UoZ 

Hongkong: 

Copper wire. 

$7,097 

$9,455 
2,418 

$5,049 

4,735 

94,194 

9,341 

on aio 

Insulated electric wire. 

Electric machinery and parts. 

756 

6,475 

6,451 

Telephones..*. 

17 

aU. OiZ 

Kwantuhg Province (Japanese Leased Territory): 
Copper wire. 

53,284 

34,794 

11,088 
76,220 
77,676 
10,905 

30,060 
95,715 
65,242 

uo 

1 AO AA1 

Insulated electric wire. 

lUOj OOl 

lOfi q 

Electric machinery and parts. 

75,691 
9,002 

luUj dio 

138,170 

1A VII 

Telephones..."1. 

4 849 

8,957 

5,078 

Wooden telegraph poles. 

17,784 

JLO, OOl 

New Zealand: 

Copper wire. 



6,531 

34,969 

34,969 

9,348 

23 

Insulated electric wire. 





Electric machinery and parts. 





Peru: 

Electric machinery and parts. 





Telephones. 




9 

Other. 




41 


Philippines: 

Copper wire. 



25 

382 

1,659 

2,480 

120 

5,739 

30,586 

9,639 

9,066 

8,477 

9,286 

6,829 

138 

213,641 
1,091 
52,184 

Insulated electric wire. 


36 

1,166 

5,173 

865 

1,256 

Electric machinery and parts. 

1,393 

1,948 

Siam: 

Copper wire. 

28 

23,792 
2,443 

Insulated electric wire. 



24,339 

625 

Electric machinery and parts. 

3,279 

711 

2,468 

Straits Settlements: 

Copper wire. 

28 

5,946 

Insulated electric wire. 


333 

Electric machinery. 

29 

1,029 

1,924 

76 

3,008 

1,303 

17,825 
80,144 
5,670 

Telephones..... 

29 

United Kingdom: 

Copper wire. 


Insulated electric wire. 

5 



Electric machinery and parts. 

79 

1,517 

51 



The export classifications for electrical goods are not very definite, 
and the foregoing figures therefore can not be analyzed readily. One 
classification that includes electric lamps but that covers other 
items, so that the figures would be misleading, is omitted. In the case 
of British India, for instance, the returns of that country under 
“electriclamps” show a total value imported from Japan of $5,163 for 
the year 1915-16, whereas under the Japanese classification of 
“lamps and parts thereof” the value of goods exported to British 
India was $396,363 for 1915 and $417,045 for 1916. 

Evidently a certain amount of the goods shipped abroad has been 
destined for direct war uses, such as the large exports to France and 
the United Kingdom. In other cases, Japan is supplying markets 
temporarily, as in Australasia; but where the Japanese have entered 
the market they will retain some trade. The trade statistics for 1917 
show good progress in newer fields also and will indicate that the 
country is getting strongly into the South American trade, where it 
will offer not only goods similar to those pushed in the past by Ger¬ 
many but also such as American manufacturers have been trying to 
establish in conjunction with the cheaper European types that they 
have been developing for that trade. 

LABOR SITUATION—RAW MATERIALS. 

The cheap labor of Japan is mainly responsible for that country’s 
being a factor in the electrical trade abroad. There are other causes 
for the development of manufacturing in this fine, but they are 
secondary. 















































156 


electkical goods. 


The average daily wages paid in various industries in Japan from 
1906 to 1915, compiled from data in the Financial and Economic 
Annual of Japan for 1917, were as follows: 


Kinds of labor. 

1906 

1907 

1908 

1909 

1910 

1911 

1912 

1913 

1914 

1915 

Farm hand (male). 

Cents. 

17 

Cents. 

18 

Cents. 

19.5 

Cents. 

19 

Cents. 

19.5 

Cents. 

21 

Cents. 

22 

Cents. 

23 

Cents. 

23.5 

Cents. 

23 

Shoemaker.’ 

29 

29 

31.5 

33 

33.5 

32.5 

34.5 

35.5 

36 

36.5 

Carpenter. 

32.5 

37.5 

40.5 

40 

40 

41.5 

43.5 

44 

43 

42 

Plasterer. 

32.5 

38 

42 

41 

41.5 

43 

44.5 

46.5 

44.5 

42.5 

Stone cutter. 

36.5 

43.5 

48 

46.5 

46.5 

47 

50 

50.5 

50.5 

49 

Tile roofer. 

36.5 

43.5 

48.5 

47 

47.5 

50 

51.5 

52.5 

52 

51.5 

Bricklayer. 

41 

48 

53 

51.5 

52 

53 

53 

54.5 

52.5 

52.5 

Shipwright. 

35 

40.5 

41.5 

40.5 

41.5 

43 

45.5 

46.5 

46 

48 

Cabinetmaker. 

29.5 

34 

35.5 

37.5 

38 

39.5 

41.5 

42 

40 

38.5 

Cooper. 

25 

27 

28.5 

30 

31 

32.5 

33.5 

34.5 

34.5 

34 

Founder. 

27.5 

31 

33 

33.5 

34.5 

35.5 

35.5 

36.5 

37 

35 

Blacksmith. 

28. 5 

32.5 

34 

33.5 

34.5 

35 

35.5 

36.5 

37 

34.5 

Potter. 

27 

27.5 

28 

32 

31 

31.5 

31.5 

34 

32 

33 

Day laborer. 

21 

24.5 

26.5 

26 

26.5 

28 

29 

29.5 

28 

27.5 

Brick maker. 

26.5 

34.5 

37 

38 

36.5 

36.5 

37 

38 

37.5 

37 





The foregoing figures are average for the whole of Japan and under 
existing conditions are low for the large cities. In the larger indus¬ 
trial districts the following figures for 1913 and 1917 are more rep¬ 
resentative of daily wages: 


Kinds of labor. 

1913 

1917 

Kinds of labor 

1913 

1917 

Carpenters. 

Cents. 

57.5 

75 

55 

Cents. 

62.5 

75 

60 

Shoemakers . 

Cents. 

70 

60 

31 

Cents. 

70 

80 

42.5 

Masons . 

Forging-factory hands. 

Casting-works hands. 

Unskilled labor. 


These figures are taken from a report issued by the Bank of Japan, 
in which the increased cost of living is compared with the prevailing 
wages paid. The present industrial boom has resulted in high wages 
in certain lines, notably shipbuilding, where in some cases common 
labor was paid as high as 50 cents per day. 

In the electrical factories the wages run at present from 1.50 yen 
(75 cents) down to 1.10 yen (55 cents) for men working machines; 
for common labor, 30 to 40 cents per day, with girls in some lines 
receiving about 12.5 cents per day. Piecework rates and bonus 
systems are common. A nominal nine-hour day is worked as a rule. 
Probably the majority of plants do not observe Sunday, but shut 
down on the first and fifteenth of each month as rest days. Where 
plants shut down on Sunday, the workmen sometimes come back 
for a half day in order to make extra money. 

With the cheap labor available, the important question is whether 
the men show the same production as workmen in American facto¬ 
ries. It is difficult to get data on this point, because few factories 
are equipped like those in the United States. In lines such as incan¬ 
descent-lamp making it was said that the Japanese production in the 
various operations is generally not much less than that in American 
plants and in some a trifle more. In small-supply lines it seems that 
the production is considerably lower, though the writer believes that 
in many cases this is partly due to the poor quality of the parts. In 
lines such as fans, the shops visited did not seem very efficient. 
Speaking generally and basing the conclusion upon personal observa- 



















































JAPAN. 


157 


tion in visiting a considerable number of Japanese works, the writer 
believes that Japanese labor will produce not more than 75 per cent 
of what American labor will produce under similar working condi¬ 
tions, and the quality of the work done is lower. 

While in a number of Japanese electrical plants working conditions 
are such that the men can show a fair production, there are many 
establishments in which the shop layout and the plant equipment 
make the production very low as compared with an American shop. 

While wages in Japan are low, they are steadily increasing, but by 
no means in proportion to the rise in the cost of living. Recent pub¬ 
lished figures show that the cost of living has increased about 66 per 
cent in the Tokyo district and 102 per cent in the Osaka district over 
the average existing at the time the war broke out in 1914. Part of 
the increased cost of living is ascribed to the higher prices of com¬ 
modities brought about by speculation. It appears likely that if 
Japan maintains a position in the industrial world, and there remains 
a demand for labor, wages will rise considerably. 

The subject of raw materials has been covered to some extent in 
outlining the mineral resources of Japan. In almost all lines the 
country has at hand fairly cheap raw materials such as are needed in 
electrical manufacturing. In copper Japan is especially strong, the 
home consumption in October, 1917, being only about one-fifth 
of the total production of 5,000 tons monthly. Another factor 
is that most of the large syndicates operating copper properties are 
also engaged in electrical manufacturing, so that they have their 
own direct source of supply. In lead, zinc, graphite, glass, and por¬ 
celain clays the Empire is self-supporting and the raw-material costs 
are low. In iron and steel Japan must buy abroad but is gradually 
limiting its purchases of finished goods by obtaining control of iron 
properties in China and erecting steel mills both there and at home. 

On the whole, the raw-material situation may be said to be favor¬ 
able. Japan has practically everything, except iron, that the United 
States or any other electrical manufacturing country has, and iron 
is one of the less expensive materials that enter into electrical appa¬ 
ratus, though suitable iron is, of course, absolutely essential for good 
results. 

POWER-PLANT EQUIPMENT. 

While steam boilers are manufactured in Japan, for ship work and 
small industrial-plant use, there is only one maker of water-tube 
boilers suitable for central-station service, in so far as was learned. 
This plant was not very important and no boilers of the make 
were heard of in electrical work. The same applies generally to 
steam pumps, economizers, condensers, etc. 

Prime movers of various kinds however, are, being manufactured 
in Japan. Small steam engines and gas engines have been made for 
some time, but not to any extent for electrical use. The most im¬ 
portant home manufacture, so far as electrical goods are concerned, 
is in the steam-turbine field. The Mitsubishi Dockyards & Engi¬ 
neering Co. has for some years been building turbines for marine 
service, and it is now building units up to 12,500-kilovolt-ampere 
capacity for central-station work. This company has its electrical 
works at Nagasaki in connection with a shipbuilding yard and has a 
very good shop equipment. The company is influential and has large 


158 


ELECTRICAL GOODS. 


resources. The Nippon Yusen Kaisha line of steamers was formerly 
a part of the Mitsubishi organization, and that company is still prob¬ 
ably the controlling interest in the line. This Mitsubishi organiza¬ 
tion is powerful in the Orient and will make a formidable competitor 
if it is able to produce reliable sets. The 12,500-kilovolt-ampere 
sets, three of which were being made for Osaka, are to operate at 
11,000 volts, and some doubts were expressed as to their satisfactory 
operation. 

A hurried visit through such of the electrical shops of the Mitsu¬ 
bishi Co. as were open showed that the machine-shop equipment is 
of ample capacity to take care of large work and that the electrical 
shop is fair. There was a large amount of work on hand, among 
which there were probably eight or nine turbo jobs, ranging appar¬ 
ently from 300 to 2,000 kilowatts. 

In generators, switchboards, etc., there are a half-dozen fair-sized 
factories, three of which can make generators of 7,500 to 12,500 
kilovolt amperes. The Mitsubishi Co. is one of these; the other two 
are the Shibaura Engineering Works and the Hidachi Mining Co. 
The Shibaura Engineering Works near Tokyo is an old Japanese 
iron works that has been aided financially by an American electrical¬ 
manufacturing company and that now makes a complete line of ap¬ 
paratus very closely resembling the product of the American com¬ 
pany. The designs appear in many cases to differ in appearance 
only as to name plate from American-made machines. This com¬ 
pany does not manufacture steam-turbine sets but does a large busi¬ 
ness in water-wheel-type generators, several of about 7,500-kilovolt¬ 
ampere capacity being seen. The Shibaura Engineering Works is the 
largest and best-equipped electrical manufacturing plant in Japan, 
turning out a broad line. In certain classes of work parts are im¬ 
ported from the American manufacturer with which it is allied. 
Japanese engineers representing the Shibaura Engineering Works are 
at the plant of the allied company in the United States and keep in 
close touch with new developments in design and manufacturing 
methods. There are no Americans in active management of the 
affairs of the Shibaura company, but they appear in the directorate. 

Normally this plant employs about 2,200 men but now the em¬ 
ployees total 3,000. It was said at the plant that one-third of the 
men are now making about 100 yen ($50) a month, with their over¬ 
time, and that this is twice what was paid in pre-war times. These 
figures are higher than data obtained as to wages in other shops. 
The plant is showing handsome earnings, dividends being paid as 
follows during the last few years: 1914, 18 per cent; 1915, 16 per 
cent; 1916, 30 per cent. 

The Hidachi plant, a part of the Kuhara organization, which con¬ 
trols large copper properties, is located in a small town north of 
Tokyo. It is a more recent factor in the electrical manufacturing 
industry than the two previously discussed. The works are exten¬ 
sive but make other lines besides electrical equipment. Difficulty 
was experienced in obtaining admittance to this plant and the com¬ 
plete works were not shown. 

In addition to these three large organizations that manufacture 
generators, there are a number of smaller companies that turn out 
motors mainly but that do make a few generators. The companies 
mentioned, however, are the ones that will be most likely to offer 
competition to foreign companies. 


JAPAN. 


159 


TRANSMISSION AND DISTRIBUTION EQUIPMENT. 

BARE AND WEATHERPROOF WIRE. 

All wire used in transmission and distribution work in Japan will 
be made in that country. Three large companies and several small 
ones are engaged in this class of work. Details of these companies 
are noted later when rubber-covered wire is discussed. 

The weatherproof wire used in Japan differs from American in that 
what corresponds to the American double-braid type is made with 
the first layer merely a covering of cotton wrapped on, while the 
second layer is braided. The next grade, which is sold abroad as 
triple-braid equivalent, has the first layer twisted also and then two 
braids on top. The braiding is poor and rather inflexible, tending to 
break when bent sharply. The compound used does not appear to 
last as well as American compound. 

Lead-covered, plain and armored, underground power cable is man¬ 
ufactured also. For this class of work the plant of the Yokohama 
Wire Works, about the largest in Japan, is equipped with German 
machinery. Paper-insulated cable is made, the paper being obtained 
from England. This plant was modern, well-laid-out, and well-kept, 
and should be in a position to turn out cable at low cost. 

PORCELAIN INSULATORS. 

In view of the reputation of the country for making porcelain table¬ 
ware, it would be expected that the manufacture of electrical porce¬ 
lain is carried on. There are two large establishments and many 
small ones, in which insulators, cut-outs, switch bases, rosettes, etc., 
are made. In so far as is known, only about three or four factories 
make insulators for over 6,600 volts or thereabouts. 

Probably the best in the high-voltage line is the Shofu Toki Kaisha, 
with its insulator plant at Kyoto. About 200 to 250 men are em¬ 
ployed on electrical work at this factory, and the company also man¬ 
ufactures chemical porcelain at Kyoto, with a second factory at 
Osaka making general porcelain lines. Both pin and suspension 
types of high-voltage insulators are produced and this company’s 
product has been employed on many of the higher-voltage lines of 
Japan. High-voltage work has been carried on for about 10 years. 
The plant is well equipped with modern mills, filter presses, etc., 
and the management seems to be in close touch with methods and 
designs developed abroad. Insulators are puncture-tested in a 
manner similar to that used in American plants, but in a small way. 
The packing of Japanese insulators was good, three large insulators 
being packed per crate, and the crates were better made than is 
general with American manufacturers. It was noticed that a wisp 
of hay or straw was placed under the cleats gripping the insulator in 
order to cushion the clamping of these pieces. 

An opportunity was afforded of carefully inspecting a number of 
60,000-volt insulators made by this manufacturer at the plant of a 
high-tension company. A shipment had been uncrated and stored 
in a warehouse. The design of the insulator and the dimensions cor¬ 
respond closely to similar four-piece insulators made by several 
American companies. While the parts were fairly well made, the 
glazing good, and the assembly solid, the examination of 50 insu- 


160 


ELECTRICAL GOODS. 


lators showed that only one or two had the parts cemented so as to 
give uniform clearances. In most cases the head was tilted a trifle, 
and in others the shells were not properly centered. In general, the 
insulators were not equal to American insulators sold in the United 
States. 

Another important insulator factory is that of the Nippon Toki 
Kaisha at Nagoya, where dishes and tableware are apparently the 
major part of the production. The plant has, however, a fair high- 
voltage insulator department and, in addition, makes the largest 
types of entrance bushings, etc. Both pin and suspension types are 
manufactured. The testing facilities at this plant are small, and it 
is likely that the output in high-voltage lines is limited. The plant 
is equipped with modern clay-working machinery and pays more 
than ordinary attention to the care of its employees. Apprentices 
will not be employed unless they have reached a certain point in 
school, and Sundays are observed. The employees work on piece 
rates to a large, extent. The highest-paid potter, working on the 
hand turning of large entrance tubes, was paid 2 yen ($1) per day. 

There are a few other plants that produce so-called high-voltage 
insulators, but their product is not very good. Insulators seen showed 
a very porous porcelain in the samples, and shipments were said to 
be inferior to samples, both electrically and mechanically. 

Most of the smaller establishments (some of which are very small) 
confine themselves generally to low-voltage insulators and the porce¬ 
lain parts for electrical accessories. The product, as a rule, is not 
uniform and is off dimension; where threads are required they are 
poor, and in general the quality is inferior to that of American goods 
in the same line. One reason for a considerable variation in a ship¬ 
ment is the manufacturing conditions in Japan. A foreign buyer 
will place an order with a Japanese who styles himself a manufac¬ 
turer but who in reality is often merely an agent for a group of small 
factories, some of them employing only a few men. If he receives an 
order for a fair number of insulators or other porcelain pieces, as is 
probable in the case of an order for export, he must have the work 
done in a number of these small establishments, because none of them 
has capacity enough to fill the order by itself. This results in each little 
plant going to work to make up the article in accordance with a 
sample submitted, and when the shipment is made it consists of 
several batches of goods made up as near the samples as possible by 
the different manufacturers but still varying to some extent. 

A number of samples of Japanese porcelain insulators, etc., have 
been forwarded in connection with other reports of the writer, and 
catalogues of several manufacturers are being forwarded herewith. 
One of the latter is gotten up in excellent style and would do justice 
to any insulator manufacturer in the United States. 

The insulator manufacturers of Japan have line hardware made 
up by outside plants and catalogue it in connection with their own 
product. 

TRANSFORMERS. 

The manufacture of transformers does not require the plant that 
the making of other apparatus lines does and has therefore attracted 
a number of small makers, in addition to such companies as the 
Shibaura Engineering Works, theHidachiCo., and the Mitsubishi Dock- 


JAPAN. 


161 


yards. The Kawasaki Dockyards at Kobe has recently begun the 
manufacture of this line and will probably develop a considerable 
output. 

In high-voltage, large-capacity lines Japanese manufacturers are 
hardly equipped as yet to turn out transformers to any extent. It is 
in distribution and in moderate-capacity and moderate-voltage 
designs that manufacturers are engaged now, though engineers 
stated that they expected to build anything in the near future. 

The Shibaura Engineering Works makes probably the best trans¬ 
formers produced in Japan, the designs being practically replicas in 
appearance of American designs. It has a large output and is 
pushing the sale of its transformers in China. Numerous small 
makers run practically one-man shops whose products are on a par 
with their “ factories.” These makers turn out jobs that have low 
efficiency, poor regulation, and indifferent insulation. Japanese 
transformers used in China have frequently broken down between 
windings. 

While the transformers built by the larger plants should be fairly 
good, troubles have been experienced with them also, which were 
due apparently to inferior workmanship rather than to design or 
materials. As compared with American transformers in the China 
trade, these better Japanese makes were lower in price, but on the 
other hand, engineers stated that they are lighter in weight, this 
information being given by American-trained Chinese who had used 
both kinds. With labor conditions as they are, Japanese manu¬ 
facturers should be able to make a better showing than they do at 
present. 

MOTORS AND CONTROLLING APPARATUS. 

There are at least a dozen manufacturers of electrical motors in 
Japan, of which six are fair-sized companies. Of these, the Shibaura 
Engineering Works, the Mitsubishi Dockyards & Engineering Co., 
and the Hidachi Co. have been mentioned. The Shibaura company 
has made motors of 1,000 horsepower; the Mitsubishi company had 
under construction in its shops at Nagasaki, during the writer’s visit 
to the plant, some 3,000-horsepower, 100 revolutions per minute, 
steel mill motors; and a 700-horsepower motor made by the Hidachi 
company was seen in operation in a shipyard. It is clear, therefore, 
that the" three companies are able to turn out motors in almost any 
capacity called for in industrial work. 

There are a number of other important factories, such as the 
Okumura at Kyoto, the Oki Electric Co. of Tokyo, the Meidensha of 
Tokyo, the works of the Osaka Electric Light Co., and the Kawasaki 
Dockyards. 

The Okumura plant is rated as a medium-sized plant and appa¬ 
rently does most of its business in moderate sizes. It secures some 
large orders, however, recently getting the contract to furnish the 
motors required for a large new cotton-spinning plant. The Oki 
Electric Co. makes a broad line of electrical goods; little motor work 
was seen during a visit to the plant. It is apparently more important 
in the telephone field than in the motor line, and a description of the 
plant is given under the former head. 

The Meidensha plant is not very large, and the motor manu¬ 
facturing done by the Osaka Electric Light Co. is not considerable. 

70005°—18-11 


162 


ELECTRICAL GOODS. 


The Kawasaki Dockyards is just beginning to take up the com¬ 
mercial manufacture of transformers and motors. It has before 
confined itself mainly to direct-current work for ship installations. 
The engineers in charge of the work seem to have obtained their 
manufacturing education in the plants of American electrical manu¬ 
facturers. It was said that this company had 900 hands employed 
in electrical work, but not so many hands were seen during a visit 
to the works. 

In addition to the companies mentioned there are a number of 
smaller organizations turning out various types of motors. The three 
first-named companies and possibly two of the smaller works are the 
only ones that will be able to offer any serious competition abroad. 

ELECTRIC-RAILWAY EQUIPMENT—MEASURING INSTRUMENTS. 

In electric-railway equipment the Mitsubishi Dockyards & Engi¬ 
neering Co. is already in the field, and in view of its resources and 
influence, will become a strong competitor for railway business in the 
Orient. This company maintains a technical school on its own 
premises, and in addition sends engineers periodically to the United 
States and Europe for special study and experience in manufactur¬ 
ing lines in whicn it is interested, so that its staff is able to take 
advantage of developments abroad. In conjunction with the railway 
shops of the South Manchuria Railway at Dairen, in Manchuria, this 
company is making electric locomotives for service where American 
and German apparatus was previously purchased. 

Another large company that is apparently entering the electric¬ 
railway field to some extent is the Hidachi Co. This company has 
built several electric locomotives for its own use, for both mine and 
railway switching service, and while being hurriedly conducted 
through the shops the writer observed a number of railway motors 
under construction. To what extent this class of equipment is being 
made for outside work is not known, but the plant facilities and the 
organization are such that commercial manufacture can be taken up. 

Cheap round-pattern switchboard indicating instruments are being 
made by several plants, one of which is the Oki Electric Co., of Tokyo. 
Those seen were of a very cheap type, and the production at the 
Oki plant did not appear to be large. In visiting this plant the writer 
was much surprised to see a low-priced pocket-type American volt¬ 
meter used as standard for the calibration of the instruments. 

At Osaka there is a wattmeter plant that is said to have been con¬ 
trolled by Siemens-Schuckert, of Germany, prior to the war, but is 
now Japanese owned. A meter made by this plant seen in a small native 
shop was identical in design, apparently, with the Siemens meter, but 
the prices quoted were higher than those asked for American meters. 
As far as could be learned, this is mainly an assembling plant. 

LAMPS. 

The lamp industry is strongly organized in Japan, there being a 
half-dozen factories of fair size making general lines and numerous 
smaller ones making special and flashlight lamps. Some of these are 
working under American patents. 

The Tokyo Electric Co., in which an American electrical manufac¬ 
turing company holds the controlling stock, has a modern plant, 


JAPAN. 


163 


including even a hospital and a private sewage-disposal system. 
This factory employs about 3,500 bands and has a production of 
about 20,000,000 lamps a year. The plant is equipped with modern 
machinery and has the latest types developed for certain operations. 
A glass factory is operated, and all the bulbs needed are produced at 
the plant. It is said that the glass blowers, who draw about 1 yen 
($0.50) per day, turn out a trifle more work in a day’s time than an 
American workman in the same trade. In other operations also the 
production per employee was said to be very good. Many girls are 
used in this class of work, and they are paid about 65 sen ($0,325) 
per day. While standard sizes of lamps are the main production of 
this plant, other lines are made also, such as American-type screw 
sockets. A branch plant of this company has been established in 
Shanghai to make lamps there for the China trade. 

In addition to its financial control of the Tokyo Electric Co., which 
is recognized as the best lamp factory in Japan, the American elec¬ 
trical manufacturing company has an interest in each of four other 
lamp works in the country. 

Besides the plants in which American capital is interested there are 
several small works making standard types of lamps, one of them at 
least being said to make wire-drawn lamps. In the miniature and 
flashlight field there are a great number of factories that are little 
better than household industries. A typical one of these visited in 
Tokyo is shown in figure 17, and samples of the product of the fac¬ 
tory are forwarded with this report. The proprietor, who learned 
the business while employed by the Tokyo Electric Co., said he 
employed eight men, but that was probably in rush times, as none of 
his force was in evidence. The work was carried on in a couple of 
small rooms on the left side of the house shown in the illustration. 
The bulbs and screw bases were purchased from other small makers, 
the proprietor stating that the plant that made the bases employed 
about 20 men and turned out 20,000 pieces per day. He also 
said that there were about a hundred small plants similar to his, 
making lamps in the Tokyo district. This is probably somewhat of 
an overestimate, though undoubtedly the number is large. 

While the product of Japanese lamp factories is in some cases fair 
and while the Americans at the Tokyo Electric Co. said that its 
product would compare favorably with American-made lamps, other 
Americans living in Japan who had no particular interest in the matter 
stated that even the best Japanese lamps blacken quickly and do not 
seem to be so good as the German lamps that were in the market prior 
to the war. There is no question that the average Japanese lamp 
sold in China is inferior to American lamps, and those sold to Aus¬ 
tralia were generally low’-grade. An Australian buyer purchased a 
number of lamps in Japan during the writer’s stay there and was given 
a guaranty of 500 hours’ life for 240-volt wire-drawn-filament lamps. 

While purchasing some samples in an electrical shop in Kobe, the 
writer was examining a lamp made by one of the smaller lamp works, 
when it slipped out of his hand and fell a distance of about 2 feet. 
It landed on some papers, apparently without any great shock, but the 
filament stem was found to be snapped off. These lamps were being 
sold at retail for 45 sen ($0,225) each for all sizes from 10 to 50 
candlepower, as they were rated, while a 100-candlepower lamp costs 
1 yen ($0.50). Wholesale prices were said to be 20 to 30 per cent 


164 


ELECTRICAL GOODS. 


below the retail prices. Flashlight bulbs in the usual range of vol¬ 
tages cost 3.7 to 4 sen ($0.0185 to $0.02) each, f. o. b. Kobe, for clear 
bulbs and 4.5 to 4.8 sen ($0.0225 to $0,024) for the half-opal, depend¬ 
ing upon the quantity ordered. The flashlight bulbs vary widely in 
shape, size, and quality and do not compare with the Austrian lamps 
generally used for flashlight work prior to the war. 

BATTERIES. 

There are several makers of wet cells and probably at least a half- 
dozen manufacturers of dry cells in Japan. In the latter line there is 
a considerable output, especially in the types used for flashlight work. 
Most of the factories are small or are a small part of larger works. 
The Oki Electric Co., for instance, makes batteries in a room of its 
plant, the work apparently being all done by hand. The best 
product is that of the Yai Dry Battery Co., whose prices, however, 
are higher in competition abroad than those of standard American 
cells. 

Many of the dry-battery factories turn out flashlight cases also, 
and these are sold at very low prices. A typical case of black lac¬ 
quered paper, similar in appearance to good black fiber, 1.5 inches in 
diameter by 9 inches in length, with a 2.25-inch lens, was being sold 
to foreign buyers at Kobe at 3.66 yen ($1.83) per dozen. Catalogues 
and descriptive sheets accompany this report, with price quotations 
to foreign buyers noted thereon. 

There are two fair-sized storage-battery companies operating in 
Japan, but no commercial installations of their batteries were encoun¬ 
tered. Sample cells and plates were seen, however, the largest cell 
having a rating of 4,080 ampere hours, but at 10-hour rating. In the 
case of the large cell, both the positive and the negative plates were 
made up of a pair of thin perforated sheets of lead with the active 
material held between them. In some smaller cells the positive 
plates were ribbed and formed instead of being the pasted type. 

TELEPHONE AND TELEGRAPH EQUIPMENT. 

There are four important factories engaged in making telephone 
and telegraph equipment, two of the plants being quite small. The 
two larger are the Nippon Electric Co. and the Oki Electric Co., both 
located in Tokyo. 

The Nippon Electric Co. is controlled by an American telephone 
manufacturer and is said to make a broad line of instruments, includ¬ 
ing everything but intercommunicating sets. Lead-covered dry-core 
telephone cable is also manufactured, and, as a side line, certain acces¬ 
sories, such as American-type snap switches. The Nippon Electric 
Co. was established in 1899 and has a fairly well-equipped plant. 
About 800 hands are employed. 

The Oki Electric Co. has a plant of approximately the same size as 
the Nippon Electric Co. in the number of men employed, though its 
plant is more crowded. After a trip through this plant one gets the 
impression that it is a number of small shops rather than one factory. 
While this works employs about the same number of men as the 
Nippon Electric Co., its line is much broader and it is not so im¬ 
portant in the telephone field. Wireless sets, fire-alarm equipment, 


Special Agents Series No. 172. 



FIG. 18.—PLANT OF OKI ELECTRIC CO., TOKYO. 



FIG. 19.—YOKOHAMA ELECTRIC WIRE WORKS 


















JAPAN. 


165 


dry cells, motors, railway-signaling apparatus, etc., are manufactured, 
in addition to telephones. The telephone line made includes both 
American and European type instruments and the general products 
are shown in a bulletin accompanying this report. 

In passing through the Oki plant it was noticed that many of the 
machine tools were Japanese made, with a few American here and 
there. In another electrical manufacturing plant, all Japanese- 
owned, the engineer escorting the writer through remarked that it 
was difficult for them to expand as they wished to because of the lack 
of new lathes. The writer suggested that lathes and other tools are 
made in Japan, whereupon the engineer said that Japanese lathes 
had been tried but were not satisfactory. In the Oki plant, however, 
a large number of Japanese tools were in service. 

It was noticed in the woodworking or cabinetmaking section of the 
Oki plant that the working conditions were primitive, and in the 
machine shop the men were crowded. As in many other Japanese 
plants, benches were not provided for handling operations on small 
pieces, the work being done on the floor. The maim building of the 
Oki Electric Co. is shown in figure 18. 

The other two telephone manufacturers of any importance, the 
Kyoritsu Electric Manufacturing Co. and the Yoshimura plant, were 
not visited; their works were said to be small. 

Wages in telephone manufacturing follow the general scale fairly 
well, being now considerably above what they have been in the past. 
Girls making induction coils and paid at piece rates averaged about 
50 sen ($0.25) per day, working net nine hours, the day beginning 
at 7 a. m. and ending at 5 p. m., with 15 minutes rest in the morning, 
30 minutes for lunch, and 15 minutes rest in the afternoon. For a 
whole telephone works, when running on average production, the 
wages per month received by the employees average about 20 yen 
($10). When the plant is very busy and a large number of unskilled 
hands are added, the average drops, and when the work slacks off 
and trained help only are retained, the average increases. 

WIRE. 

The manufacture of wire for all electrical uses is one of the most 
strongly developed industries in the electrical field in Japan. There 
are three very large companies and probably a half-dozen smaller 
ones. 

The Yokohama Electric Wire Works is the largest manufacturer 
in Japan, operating three plants and employing a total of 1,200 men. 
This company is 80 per cent controlled by the Furukawas, who own 
the Ashio copper mine, one of the best producers in all Japan, and 
who operate alarge refinery and wire-drawing plant at Nikko, so that 
their copper supply is obtained at a low figure. The Furukawa com¬ 
pany does commercial smelting and refining, in addition to handling 
its own ore, and is a large exporter of refined copper. 

The Yokohama Electric Wire Works, like most Japanese plants, 
will make practically any kind of wire desired, turning out large 
amounts of British standard rubber-covered wire for export, in 
addition to the paper-taped grade made for local consumption. 
The main rubber-covered-wire plant at Yokohama is equipped mainly 
with British machinery, whereas the cable plant near by is equipped 


166 


ELECTRICAL GOODS. 


with German machinery. The men employees receive 1.50 yen 
($0.75) per day down to 0.60 yen ($0.30), and girls are paid as low as 
25 sen ($0,125) a day. The rubber-covered-wire plant of this com¬ 
pany in Yokohama is shown in figure 19. 

Probably the next most important wire plant in Japan is that of 
the Sumitomo people, located at Osaka. This plant is not so large as 
the Yokohama factory, but it is operated in much the same way, in 
that the owners have their own copper mines and are people of large 
resources. The Fujikura Electric Wire Manufacturing Co. at Tokyo 
is the third of the manufacturers of this class of materials, its plant 
being of about the same size as that of the Sumitomo company. 

The half-dozen smaller manufacturers make probably only one 
class of wire each and employ about 20 men or so. Only the three 
large companies engage in export work. 

British buyers in Japan stated that they hardly believed Japanese 
makers could produce good rubber-covered wire in normal times at 
lower prices than the better manufacturers in England, whose prices 
have generally been lower than American. The writer is inclined to 
doubt this after visiting the plant of the Yokohama Electric Wire 
Works and the refinery and wire-drawing plant at Nikko. The 
Japanese manufacturers at present are making large profits, one 
company paying 16 per cent dividends in 1915 and 30 per cent in 
1916. In addition, the prices for the billets and bare wire used in 
the covered-wire plants are probably high enough to enable the 
owners to show good earnings on their refineries and wire-drawing 
plants. The Japanese plants therefore have a good margin on which 
to work, and though the cheap labor is not so much of a factor in 
wire as in other electrical lines, the combination of cheap labor and 
cheap material should enable the manufacturers to turn out wire at 
a low cost, even allowing for lower efficiency. 

In the production of electrical goods, however, the Japanese do 
not seem to exercise the care that is necessary to insure continuous 
high quality, and this fact may work against them. Buyers who are 
at present coming to Japan to place orders must arrange for close 
inspection of goods before accepting and paying for them. In the 
case of some No. 18 Cablemakers , Association wire for Australia, 
the braid of part of a shipment was red and part was black, as usual. 
Both kinds tested well and seemed to be all right when accepted, but 
upon arrival in Australia it was found that while the black-colored 
wire was good, the red wire showed a very low megohm test. Investi¬ 
gation showed that something used in coloring the outer braid had 
caused the rubber compound to deteriorate. 

In enameled wire very careful inspection is given as to both gauge 
and insulation, and about 10 per cent of shipments were generally 
rejected by one buyer. This was the product of one of the three 
large companies. This buyer stated that on silk-covered §,nd cotton- 
covered wire, the Japanese companies seemed to turn out good work. 

SWITCHES, SOCKETS, ETC. 

In switches, sockets, and other supplies the manufacturing in 
Japan is not well organized and is in many cases fit tie better than 
household industry. As an indication of the situation, a story was 
told by a buyer who wished to purchase some tumbler switches. 


JAPAN. 


167 


He received a large number of samples and prices from various 
people and one of the switches was somewhat better than the average. 
He found that these were made in a small shop, mostly by hand, and 
after talking deliveries, etc., with the agent for the maker, he sent a 
sample back to his principals, who at once advised him that the 
switch was satisfactory. When the buyer went to place his order, 
he was told that they could not accept the business as they were 
no longer making switches. Investigation revealed that the “manu¬ 
facturer” was making jam tins, this field of endeavor having proved 
more lucrative than the electrical industry. 

The writer one day went around with a buyer in Osaka and 
visited a number of small plants. These were represented by a man 
who himself had a fair-sized porcelain factory, and for whom these 
smaller plants seemed to act as subcontracting manufacturers. He 
was reported to have about 20 of these small shops working on his 
orders, the shops being scattered all over the town. 

The first plant visited was engaged in assembling tumbler switches. 
About 35 men and girls were employed, the latter receiving 25 sen 
per 10-hour day. Hie assemblers sat on the floor in a group about 
a few piles of parts. The second plant was making rosettes, or rather 
“ceding roses,” for Australia, and employed about 30 men. The 
porcelain part came from Nagoya, but most of the metal parts were 
finished in the shops. Two men were making screws—that is, 
threading the blanks. The die in each case was fitted at one end of 
a cylinder, which revolved in a bearing, so that the die end faced the 
workman and an overhanging end opposite provided the “pulley” 
space, this type of screw-cutting machine being driven by a cord 
that was given a couple of turns about the overhanging end of the 
chuck cylinder and connected at each end to a pedal. The die 
therefore alternated in direction. The men would take one screw 
at a time in a pair of forceps and push it into the die, the back turn 
of the die throwing the screws out as the workman pressed down on 
the opposite pedal. When they had no trouble these men would 
thread from 20 to 30 screws per minute, but the work done was not 
ve 



The next plant visited was turning out British-type open-link 
cut-outs, and counterweights for drop-cord lights. About 25 men 
and girls were working in a room about 25 by 30 feet. Metal parts 
were being turned out by hand-operated stamps and by punch 
presses that were screw operated with the handwheel at the top 
made heavy and giving a sort of a flywheel effect. 

The fourth plant employed about 10 girls in assembling the cheap 
combination switch and cut-out used for entrance work in Japanese 
house wiring and in making wall plugs. The girls all sat in a group 
on the floor in a very small room. Hie fifth plant was the only one 
in which power was used to any extent, and was said to be making 
the highest-quality bayonet sockets manufactured in Japan. This 
plant employed about 50 or 60 men and girls, the latter on assem¬ 
bling. Three or four American automatic machines were being used 
in this plant and several Japanese-made turret lathes, in addition to 
smaller machines. The machines did not seem to be very well 
kept or to be working as fast as is customary in the United States. 
One man took care of two automatics, apparently, and the pay was 


168 


ELECTRICAL GOODS. 


said to be about 1 yen per day of 10 hours, which seems low in view 
of the wages paid in other plants. 

In addition to the small shops, a number of larger plants make 
wiring devices, such as the Tokyo Electric Co., the Oki Electric Co., 
and the Nippon Electric Co. The Tokyo Electric Co. makes sockets 
and switches; the Oki Electric Co., a general line; and the Nippon 
Electric Co., switches. The products of the first and last named 
companies are generally similar to standard American devices. 

DOMESTIC APPLIANCES-ELECTRIC FANS. 

As far as could be learned, there are three or four plants in Japan 
making small electrical appliances, mostly teapots and flatirons, 
though other devices, such as electric cigar lighters and soldering 
irons, are also turned out. Toasters were seen in other markets that 
had many indications of being Japanese-made in imitation of Ameri¬ 
can types, but these were probably made up as per samples. 

The manufacture of heating appliances nas not been developed 
to any extent and the product so far has been poor. Samples 
accompany this report. One unusual development seen was a por¬ 
celain electric teapot of one-half liter (about one pint) capacity. 
This had a porcelain-clad cartridge-type heating element consuming 
about 300 watts and was rated to boil a half liter of water in 14 
minutes. The retail price in the shops was 2.50 yen ($1.25) and the 
wholesale price was given as 1.50 yen ($0.75). The same type was 
seen in China, where it was said to be unsatisfactory. 

The only opportunity the writer had to see a plant where heating 
devices were made was at Tokyo, where, however, no work was being 
done at the time. 

In electric fans Japanese makers have done considerable business 
and are cutting into American trade in foreign markets. There are 
three or four manufactories of importance, and it is said that quite 
a number of small shops are taking up the work. 

The most important plant making fans is probably the Shibaura 
Engineering Works, which was said to have produced 30,000 fans 
in 1917 and to be planning a considerable increase in output during 
1918. General details of this plant have been given earlier in this 
report, the company making a ian much like the American company 
with which it is allied. The Shibaura fans are said to be the best 
made in Japan. 

Another plant that is small but turns out about 10,000 fans a year 
is the Sanden Electric Co. of Tokyo. This company makes fans 
mainly, with some output of heating appliances. In rush times the 
owner said he employed as many as 80 men but that he then had 
only 50. The plant equipment was quite simple and old. The press 
for compressing armature laminations for riveting was hand-operated, 
and the layout was not adapted generally for the development of 
efficiency. Empire cloth was used for insulation and the materials 
generally seemed fair, though there did not appear to be much 
inspection of the workmanship. Men in the machine shop were paid 
1.30 yen ($0. 65) per day, according to the proprietor. 

Various other makers, such as the Oki Electric Co. and the Okumura 
Co., make fans also, though their output is not known. It is be- 


JAPAN. 169 

lieved, however, that the number manufactured in Japan in 1917 
was at least 50,000. 

During the season of 1917 the standard 12-inch fans made by the 
Sanden Co. retailed at 20 yen ($10) and cost wholesale about 16 yen 
($8), while the oscillating type in the same size cost about 28 yen 
($14) retail and 21 yen ($10.50) wholesale. There was a shortage 
of fans in Japan during the season and the prices were probably a 
trifle higher than usual for that reason. 

OTHER ELECTRICAL GOODS. 

Other electrical goods made in Japan, largely in accordance with 
samples submitted by the buyers, are iron-clad switches and cut¬ 
outs, European-type knife switches, distribution fuse boards, hand¬ 
grip fuses, such as are used in British colonies for motor protection 
and switchboard service, friction and rubber tape, electric bells, 
etc. Fixtures are made by a number of small shops and to a small 
extent by larger plants as a side line. Glassware is manufactured 
in considerable amount, one of the largest producers being the 
Asahi Glass Manufacturing Co. in the Kobe district. This company 
has a capital of $500,000. 

Catalogues issued by Japanese manufacturers list almost every¬ 
thing that has been used in the electrical industry since the first 
lighting plant was started. Typical catalogues and bulletins accom¬ 
pany this report. 

JAPAN’S PLACE IN ELECTRICAL TRADE OF FUTURE. 

Japan is undoubtedly going to be a factor in the electrical trade of 
the world after the war, though the writer does not believe that its 
competition will be felt so keenly as the low wages paid would lead 
one to expect. The low-salaried Japanese laborers can not work so 
w^ell nor so rapidly as can American laborers. The writer believes 
that the living conditions—the housing and the food of the people— 
do not adapt them for a hard industrial life. In many industries 
there is said to be a constant change in employees. At the present 
stage of the industrial development of the country a surplus of labor 
is available throughout the country, though there have been local 
shortages in a few instances in the larger industrial districts; but 
even now manufacturing plants are being located at interior points, 
so as to draw from new sources of labor. With the growth of manu¬ 
facturing and the consequent diversion of labor to industry there is, 
and will be, an increasing cost of living, as already mentioned, and 
wages in time will be forced up, reducing the margin in favor of Jap¬ 
anese manufacturers. Japanese electrical manufacturers in the past 
have done practically no development work and have no overhead 
charges from that particular expense. They have begun to manufac¬ 
ture on the experience and designs of others. The future should 
force them to face these charges, and then another margin in their 
favor will be reduced. 

It is the writer’s judgment that Japan will take a fair amount of 
the electrical trade, especially in the Orient, but that its manufac¬ 
turers will not be able to undersell other nations generally except in 
the cheapest classes of goods. 


170 


ELECTRICAL GOODS. 


CHOSEN. 

INTRODUCTION. 

Chosen (Korea) does not appear to offer so broad an electrical 
market, relatively, as do the other Oriental countries. There is 
little industrial development outside of mining, and the standard of 
living of the Koreans is not so high as that of their neighbors. 

There are lighting plants in but a few of the cities and there is only 
a moderate number of mines of any considerable size. At the end 
of 1915, according to the latest official figures published, there were 
only 43 industrial companies in Chosen, and their paid-up capital 
totaled only about $1,600,000. 

The central stations are Japanese-owned, and what little manu¬ 
facturing is done is more or less in the hands of Japanese. The min¬ 
ing is principally carried on by foreigners, with American companies 
controlling the three largest gold-mining properties. 

While a fair amount of American electrical machinery has been 
sold in Chosen in the past, the future is hardly promising. The 
street railway and electric lighting system in Seoul (Keijo), the cap¬ 
ital of the country and its largest city, was formerly owned by Amer¬ 
icans and the equipment and supplies came from the United States; 
but some years ago the system was taken over by a Japanese syn¬ 
dicate, and Japanese goods are now favored. It is in the mining 
field that American electrical apparatus will find the best general 
market under the present conditions. 

Trade returns show that in 1916 the total of imports classified 
under the headings of steam boilers, telegraph and telephone instru¬ 
ments, electric-light appliances and instruments, copper wire, insu¬ 
lated electric wire, and all other machinery was 1,841,640 yen 
($920,820), a of which Japan furnished almost 65 per cent and the 
United States a little less than 31 per cent. Omitting the item “all 
other machinery/’ which makes up almost two-thirds of the total of 
these imports, and considering only those items that are clearly elec¬ 
trical, Japan furnished 84 per cent and the United States about 12.6 
per cent. 

In view of the tendency toward Japanese control of purchases of 
electrical goods in the Korean market, the growth of electrical manu¬ 
facturing in Japan, the lack of direct American representation in 
Chosen, and the increase in the tariff on foreign goods that will prob¬ 
ably come in 1920, Chosen can not be considered a promising market 
for American electrical goods. 

GENERAL INFORMATION. 

Chosen (Korea) until 1910 was a separate kingdom, though for a 
few years prior to that time it was more or less under the control of 
the Japanese. In August, 1910, however, the country was formally 
annexed by Japan and a colonial governor general was appointed 
to take control of the affairs of the nation. Most of the concessions 
controlled by foreigners were obtained from the old Korean Govern¬ 
ment prior to Japan’s accession to the control of the affairs of that 
country. It is now difficult for outsiders to enter upon any new in¬ 
dustrial developments requiring official sanction or permits. 


a One yen is taken at its approximate average exchange value of $0.50 in United States currency. 



JAPAN. 


171 


Chosen (Korea) is a hilly peninsula, jutting off from the Continent 
of Asia, roughly northeast of China. It projects generally toward 
the south island of the Japan group and lies approximately between 
the thirty-fourth and the fortieth parallels of latitude. It has an 
area of about 84,129 square miles, or is roughly equivalent in area to 
the State of Minnesota. 

The country is generally hilly and a chain of mountains with ele¬ 
vations up to 9,000 feet runs along its west coast and comes partly 
across both the northern and the southern extremities of the penin¬ 
sula, though in the latter case the hills are usually lower. The 
country along the east coast is more or less rolling, with low hills 
along the various river courses. Throughout this section and in the 
valleys in the mountains wherever possible, the land is cultivated 
carefully in small patches. 

There are forests in the more mountainous sections, but the lower 
hills in most cases have been long since denuded of timber. At¬ 
tempts are now being made to reforest sections of the country along 
scientific lines. 

There are a number of short rivers in the country proper, the most 
important being the Kanho and the Daidoko, on which are located 
Seoul and Pyeng Yang, respectively. The Yalu on the Chosen-Man- 
churian frontier is a river of considerable importance in that it forms 
the only present means of access to considerable territory in that 
district. In general, however, the rivers of Chosen are more likely 
to be important for irrigation and water-power purposes than for 
commerce. At the present time irrigation has been fairly well de¬ 
veloped, but no great amount of water-power development has been 
done. 

The climate of Chosen is somewhat like that of the northern part 
of the Middle West of the United States, though hardly with such 
temperature extremes. 

According to the latest estimates (Dec. 31, 1916), Chosen has a 
population of about 17,000,000 people, of whom possibly 1.5 per cent 
are Japanese. 

In appearance the Koreans seem to have more the characteristics 
of the Chinese than of the Japanese. Physically they are as a rule 
large, spare, and erect; the men are hardy and it is said that laborers, 
using Korean packsaddles, have been known to carry for short dis¬ 
tances loads as heavy as a barrel of cement, weighing between 380 
and 400 pounds; the common load is 100 to 150 pounds. The people 
do not seem to be so industrious nor so ambitious as the Chinese, 
though they will work well if closely supervised. It was noticeable 
that the work of native artisans is, in general, quite crude, but this 
may be due in part to the very primitive tools that are employed. 

Primarily the Koreans are an agricultural people, and the land is 
generally cultivated wherever the soil conditions permit. The prin¬ 
cipal product is rice, but considerable quantities of millet, barley, 
soya beans, and wheat are raised. Rice and millet are the common 
foods of the masses. Cotton also is grown in Chosen, the Japanese 
Government making considerable effort to bring about its extensive 
culture in order to have home production of as much as possible of 
its requirements in that line. Farming is carried on in small plots 
and the methods in vogue are primitive. The country people live in 
little clusters of small, squalid, straw-thatched, mud-walled houses. 


172 


ELECTRICAL GOODS. 


Mining is probably next in importance to agriculture in Chosen, 
though a relatively small proportion of the people is engaged in that 
industry on any organized scale. The leading mineral products are 
gold, silver, zinc, copper, lead, iron, graphite, and coal, the., country 
being said to be especially rich in gold, iron, graphite, and coal. As 
was previously mentioned, the gold mining is mostly in the hands of 
large companies in which American capital predominates. 

Wages paid men by the large mines are low, hand miners being 
paid about 25 cents per 10-hour day and machine miners, 35 cents. 
Japanese carpenters are paid 75 cents and Korean carpenters 30 
cents per 10-hour day. Japanese and Korean blacksmiths receive, 
respectively, 75 cents to $1, and from 30 to 50 cents for 10 hours 
work. Common labor (Korean), on mine work, is paid about 17.5 
cents for surface work and 20 cents underground per 10-hour day. 
It will be noted that the ability of the Korean artisan is rated con¬ 
siderably below that of the Japanese by the large mine that quoted 
these figures. 

Industries of less importance in Chosen are fishing, silk culture, and 
the raising of poppies for opium, the last mentioned being a recent 
development, it is said. 

PORTS AND TRANSPORTATION. 

Goods destined for Chosen are generally transshipped at Kobe, 
Japan, though some shipments from Europe may be rehandled at 
Shanghai. The principal steamship lines are those of the Osaka 
Shosen Kaisha and the Nippon Yusen Kaisha, in addition to a line 
of ferry steamers between Fusan and Shimonoseki. There is also a 
local coastal service conducted by the Chosen Yusen Kaisha. The 
ferry service maintained between Shimonoseki and Fusan gives con¬ 
nection twice daily between the Imperial Railways of Japan and the 
Chosen Railway system, the trains terminating at the boat docks at 
each port. 

The principal ports of entry in Chosen for foreign goods trans¬ 
shipped at Kobe or Shanghai are Jinsen (Chemulpo) on the west 
coast, the port for Seoul, the capital and the largest city; Chinnampo, 
also on the west coast, the port of entry for the territory tributary to 
the important city of Pyeng Yang, and Fusan, the nearest entrepot 
to Japan. There are also other ports of more or less importance, such 
as Urusan, Genzan, and Seishin, the last named being not far from 
Vladivostok. 

The Japanese Government is making extensive harbor improve¬ 
ments at both Fusan and Chemulpo, constructing at the latter port a 
large tidal basin with well-designed locks and gates. In the vicinity of 
Chemulpo the variation between high and low tides sometimes reaches 
a maximum of 30 feet, and normally runs about 23 feet in the harbor. 

While the steamship connections between Japan and Chosen are 
ample so far as tonnage available goes, all American goods must 
necessarily be carried by Japanese steamers, which, it is said, do not 
give the same facilities to American as to Japanese goods. 

Handling the internal commerce of the country there is a trunk 
railway from Fusan at the southern extremity of the peninsula to 
Shin Gishu on the Yalu River, crossing here to Antung, Manchuria, 
where the Chosen Railways connect with the South Manchuria 
system. Branch lines connect Chemulpo (Jinsen) with the trunk 


JAPAN. 


173 


line at Seoul, and Chinnampo likewise with Pyeng-Yang. A line also 
connects Seoul with Genzan. There is a total length of about 1,066 
miles in Chosen, practically all of which is standard gauge, equipped 
with American-type and, in most cases, American-built locomotives 
and cars. The freight cars are usually of 50,000 pounds’ capacity, 
and the facilities are generally ample for handling cases of any size 
that are used in packing electrical goods for export. 

Prior to annexation by Japan there were said to be few roads worthy 
of the name in Korea and, as a matter of fact, there is no great 
number now; but the Government is developing a comprehensive 
system of military highways that will prove a great economic asset 
to the country. One conspicuous feature of Korean road building is 
that the natives always economize on bridging. Abutments are low 
and the waterways are contracted, resulting in frequent washouts of 
highway bridges. After every heavy rain, therefore, highways are 
impassable to vehicles, owing to missing culverts and bridges. Bull 
carts are used to a large extent for road transportation, two-wheeled 
box-body carts being most common. In the case of a certain mine 
near Seoul, located about 8 miles from the railway, it was found 
cheaper to haul coal over an indifferent dirt road by native bull carts 
than by a new 3-ton gasoline motor truck. 

TARIFF—REPRESENTATION IN CHOSEN MARKET. 

When Chosen was annexed the existing schedule of duties on 
imported goods was not affected, and these remain as specified in 
treaties that the old Korean Government had signed with various 
foreign Governments. These duties are all on an ad valorem basis, 
the value on which duties are assessed being the c. i. f. value at date 
of arrival. On various electrical items the rates are as follows: 
Copper wire, 7.5 per cent; machinery of metal, 7.5 per cent; ma¬ 
chinery, other, 8 per cent; lamps and parts, 7.5 per cent; and articled 
used solely for advertising, free. 

The present tariff will remain in force until 1920, when the old 
treaties expire. Then a new schedule will probably be put into 
effect, similar to that in Japan, and foreign manufacturers will 
find it more difficult to sell electrical goods in this market owing to 
the protective margin given Japanese industries. 

The bulk of the American electrical goods in service in Chosen 
has been sold by a few large Japanese houses representing manufac¬ 
turers of the United States in both Japan and Chosen and these 
houses have in many cases financial relations with the purchasers. 
A small volume of supplies and miscellaneous goods has been sold by 
two or three American firms or individuals that have been estab¬ 
lished in Chosen for some years, but their business has not reached a 
great total. Likewise a small amount has been sold through Ameri¬ 
can export and import houses with headquarters in Japan. 

British and German apparatus has been sold both by branches in 
Japan, sometimes with offices in Chosen, and by large Japanese 
houses representing the manufacturers in both Japan and Chosen. 
Japanese manufacturers of electrical goods are broadly represented 
by local Japanese agents. 

There appears to be small opportunity for American electrical 
manufacturers, not already in the field, to secure proper representa¬ 
tion, and in view of the limited market, the restricted buying result- 


174 


ELECTRICAL GOODS. 


ing from tlie frequent close financial connection between the large 
Japanese electrical houses and the buyer, and the increasingly keen 
competition from Japanese manufacturers, it. is not advisable for 
American manufacturers to go to any expense in trying to establish 
themselves on the market. 

In the case of specialties, such as would have no competition, 
American manufacturers could get Japanese houses to act as their 
agents; the fact is, however, that there is no market for anything 
but what might be termed staple electrical lines. 

POWER STATIONS AND SYSTEMS. 

There are only about 10 electric-power plants of consequence in 
all of Chosen, the largest being at Seoul, the capital city, where the 
present capacity is given as about 2,500 kilowatts, with additional 
equipment shortly to be installed. This plant at Seoul supplies 
both the railway and the lighting systems. Both of these were in¬ 
stalled and for many years operated by an American company, but 
some years ago the system was taken over by Japanese. Of the 10 
power plants noted, 5 are engaged in supplying mining properties, 
mainly or all together. 

The apparatus seen in power plants in Chosen covered a wide 
range of makes. Seoul, for instance, has British Thomson-Houston 
and Mitsubishi steam turbines, in addition to some of the original 
American steam-engine equipment; the Fusan station has Premier 
(British) 4-cylinder producer-^as engines; the new Chiksan Mining 
Co.’s station and a plant near Pyeng Yang have American turbines; 
the Shimashu, Escher-Wyss steam turbines; the Chemulpo power 
plant, German unaflow-type engines, and so on. 

The central-station development is very limited and can hardly 
show any strong future owing to the industrial conditions and the 
low standard of living. The strongest growth will undoubtedly be 
in connection with the development of mining in the country. 

New stations will probably use steam turbines mainly, though 
there will be some hydroelectric development. The coal largely 
used in central-station work throughout Chosen is obtained from 
the Fushun mines near Mukden, Manchuria. In the fall of 1917 it 
cost about 8.60 yen ($4.30) per ton delivered at railway stations in 
the vicinity of Seoul. Five years ago the same coal cost only 5 yen 
($2.50) per ton f. o. b. railway stations. There are fair coal deposits 
in several places in Chosen; at present mining is carried on probably 
to the largest extent in the vicinity of Pyeng Yang, anthracite being 
obtained there. There is no reason why coal should not be cheap 
normally along the Chosen railways, and this fact will tend to limit 
water-power development for some years to come. There are now 
two hydroelectric plants in operation, one rated at 500 kilowatts 
owned by an American company and using American equipment 
and the other, rated at less than 100 kilowatts and owned by the 
Gensan Hydroelectric Co. This latter plant has an Escher-Wyss 
turbine with a Siemens-Schuckert generator. It is understood that 
a comprehensive investigation of the water-power resources of Chosen 
has been made officially, and this will probably result in a few devel¬ 
opments by Japanese capital. 

The electrical equipment and motor manufacturers most strongly 
in the field in Chosen normally seem to be two of the large American 


JAPAN. 


175 


companies, the Sbibaura Engineering Works of Tokyo, Siemens- 
Schuckert & Co. and the Okumura Co. of Japan, with some goods 
sold by the Allgemeine Elektricitats Gesellschaft. The United States 
has supplied a fair portion of the total power-station equipment now 
in service and will probably continue to sell some large pieces of 
apparatus in the market, though Japanese manufacturers will be 
very strong competitors. This statement is somewhat dependent 
upon the success attained by Japanese steam-turbine manufacturers. 
The development of reliable and economical units by these makers 
will enable them to make good headway in the market and they 
should easily be able to quote low prices on such equipment in Chosen 
upon the raising of the tariff to a parity with that of Japan. 

While the manufacturers of the United States will be able to sell- 
steam turbines in the market, under the conditions outlined, it is 
hardly likely that American makers of other prime movers, such as 
hydraulic turbines and producer-gas equipment, will be able to 
compete with British and European manufacturers. 

In the motor field Japan will probably have the best hold on the 
market ex. opt for the requirements of the mines, where the severe 
duty as well as the nationality of the companies will tend toward the 
use of American equipment. It will be remembered that in view of the 
limited industrial development of the country, there is a very small 
field for the general sale of motors. 

The line construction in connection with power stations in Chosen 
is generally similar to that done in small American cities and 
is all overhead. Wooden poles are employed throughout, with in¬ 
sulators of Japanese manufacture. Even the American mining 
companies were using Japanese-made insulators, in one instance for a 
50,000-volt transmission system. The wire used, both bare and 
covered, will naturally come from Japan. On the whole, for outside 
construction work, it seems that American manufacturers will be 
unable to sell any materials, except possibly some line hardware 
via Japan. 

ELECTRIC RAILWAYS-TELEGRAPH AND TELEPHONE SYSTEMS. 

There are only three electric-railway systems in Chosen, one at 
Seoul, another at Fusan, while the third is the Seishin-Ranan road. 
The first mentioned was established by an American company in 1899 
and was under American control and management until 1909, when it 
was sold to a Japanese syndicate. The Seoul system was American 
equipped throughout and since its taking over by the Japanese has 
purchased most of its electric-car requirements from the United 
States. This system has about 15 miles of line, with a 3-foot 
6-inch gauge. The Fusan company operates about 6 miles of city 
line with a 2-foot gauge, in addition to a short interurban line to 
Totai. The Seishin-Ranan Line is 2-foot 6-inch gauge. There are 
several cities in which man-operated push cars are operated over rail 
systems with 24 or 30 inch gauge, some of which will probably be 
electrified in the near future. While American manufacturers have 
sold the bulk of the electric-railway equipment at present in service 
in Chosen, it is doubtful whether they will be able to continue to hold 
the market so well in the future, as it is possible that some motors 
and controllers made by Japanese manufacturers will be purchased for 


176 


ELECTRICAL GOODS. 


new systems, in view of the fact that the developments will he made 
by Japanese capital. 

The telegraph and telephone systems are both Government owned, 
and the operating conditions and tendencies are similar to those 
noted in the report on Japan. Figures for 1916-17 stated that there 
were then in operation 1,189 miles of telephone and 1,994 miles of 
telegraph line. The available data give the total combined gross 
earnings for the postal, telegraph, and telephone systems as $1,954,556, 
which does not indicate any remarkable development in telephone 
and telegraph work. 

It is expected that all the purchases of telegraph and telephone 
equipment and materials will be made in Japan, as the practice is 
similar and there appears to be no likelihood that an automatic system 
will be taken up. 

GENERAL ELECTRICAL GOODS. 

The house wiring done in Chosen is mainly open knob or cleat work 
and is very cheaply done. The lamp installations are in most cases 
drop-cord lights with cheap, plain, opal, conical shades. There does 
not appear to be much of a future for manufacturers of the United 
States in standard types of wiring devices. Japanese makers will 
supply wire, porcelain fittings, glassware, and probably the hulk of 
the sockets and switches, though cheap types of American snap 
switches and screw sockets could compete in Chosen under the present 
low tariff if it were not for the high ocean freight rates. 

There is no demand, outside of that from the very few foreigners in 
Chosen, for any kinds of domestic or office electrical devices or ap¬ 
pliances except electric fans. Fans are used to a considerable extent 
in shops and offices hut to only a limited extent in homes. The 
Koreans themselves, where they can afford electric service, are not 
often able to buy any electrical devices. American manufacturers 
can readily compete in the fan market, but the facilities for selling 
them are very limited. 

Japan makes almost everything known in electrical apparatus, 
equipment, and appliances. Furthermore, the product is generally 
cheap and more nearly within the purchasing power of the average 
Korean than are American goods. It is therefore to be expected, in 
view of this situation and the nearness of Japan to the market, that 
Japanese manufacturers will be able to sell the bulk of the miscel¬ 
laneous electrical devices. The Koreans are beginning, however, to 
appreciate the difference between cheap Japanese goods and higher- 
priced American lines and to realize that there is frequently a greater 
difference in quality than in price. In a few lines inferior Japanese 
products, under the present tariff, are unable to compete even in 
price with American electrical goods. This was true in the case of dry 
cells and carbon brushes. 

The field, however, is very limited and no great amount of business 
can be expected by American manufacturers. The manufacturers of 
Japan, furthermore, are able to work the field intensively through the 
numerous Japanese business houses, whereas American manufac¬ 
turers are limited in the means for the distribution of their goods. 
In view of the approaching increase in the tariff, the situation does 
not warrant any attempts to better the representation of American 
electrical goods, and it would seem that the possibilities for American 
manufacturers are limited mainly to the sale of large equipment. 


VLADIVOSTOK. 


INTRODUCTION. 

Vladivostok, the most important Russian seaport and naval sta¬ 
tion on the Pacific, supplies not only eastern Siberia but also to a 
large extent northern Manchuria, politically a part of China. This 
tributary country is rich in possibilities. At present the develop¬ 
ment is not extensive, but the natural resources are such that it is 
only a question of time when they will be made available to the world. 
Lack of proper transportation facilities has been one of the main 
reasons for the slow development in this part of the world. Not 
only is there a lack of railways, but country roads are few and poor. 
This holds true both for eastern Siberia and for northern Manchuria. 
Even under existing conditions, however, Vladivostok, as the main 
entrepot for this promising part of Asia, offers a fair market for 
electrical goods. In the line of accessories and in telephone equip¬ 
ment the competition of Japan (and later Russia itself, Germany, 
and Sweden) will be keenly felt. In apparatus lines there will like¬ 
wise be competition from the same sources, but this will not be so 
difficult to meet. 

Prior to the war Germany supplied a great deal of the electrical 
equipment of all kinds used in this territory. Now Japan, with its 
low-quality, low-priced materials, is trying to take the lead in the 
market. Buyers, however, have not taken kindly to Japanese 
quality and it is doubtful whether Japan can intrench itself strongly 
in the market, even with all competition removed. American manu¬ 
facturers can obtain a fair proportion of the business if they will meet 
the requirements of the buyers, which, as a rule, are not difficult. 
American quality stands well with buyers, but American manufac¬ 
turers must not for this reason try to force on them types of goods 
that are not likely to find favor with the ultimate consumer. 

The controlling factors upon which success in this territory depends 
are, first, adequate American representation and, second, the fur¬ 
nishing of the types and classes of goods demanded by the market 
and the observance of customary business methods. Proper repre¬ 
sentation must be had. Indifferent agents are worse than none at 
all. An instance was noted where the local agents for one American 
company had not only made a poor installation of a piece of appara¬ 
tus but had made statements as to its performance that put it in 
a very poor light. These agents were not American. The matter 
of furnishing the buyer with the class of goods he can best sell in 
the market has been discussed at length in other reports of this 
Bureau. At home the manufacturer is constantly striving to offer 
things that will “take” with the public—things for which there is a 
strong general demand. The same common-sense principle underlies 
success in foreign fields. Furthermore, sales must be made on terms 
to which the buyers are accustomed and which are somewhat similar 
to those given by competitors. 

70005°—18 - -12 


177 



178 


ELECTRICAL GOODS. 


The time spent in Siberia and northern Manchuria by the writer 
was short, the purpose being mainly to investigate import conditions 
through the port of Vladivostok in connection with the investigation 
of the market for electrical goods in Chinese territory. Naturally, 
therefore, this brief report is limited in scope and is presented by no 
means as a complete study of the possibilities of the market. 

The country for which Vladivostok is the natural entrepdt has 
about the same average latitude as the northern part of the United 
States. Vladivostok itself lies only about as far north as Chicago or 
Milwaukee, though the climatic conditions are more severe. The 
district that apparently can be supplied advantageously from this 
port takes in the Amur River basin to the north and goes as far south 
as Chanchung in Manchuria and west to Lake Baikal. The area of 
the district is somewhat more than one-quarter of that of the United 
States proper. 

The country close by the railroads and rivers is now fairly well 
known and mapped, but that lying outside of these zones is said to 
be imperfectly known still, much of the data available being based 
upon reports of hunters, prospectors, and natives. 

Considering eastern Siberia and northern Manchuria generally, 
much of the country is said to be rolling plain with low hills. Scrub 
timber grows on these hills and in the more mountainous sections 
there are heavy forests of coniferous trees. In many places, however, 
forest fires have destroyed the original timber and the existing woods 
are thin. The plains are said to be very fertile and there is much 
agricultural land throughout the district; as yet there is not a great 
deal under cultivation. 

The climate is severe, being somewhat similar to that of the north¬ 
ern part of the American Middle West. Summers are fairly short 
and hot; winters are lon°; and cold, though hardly so cold as gen¬ 
erally believed. In the Amur River district the summer maximum 
may be as high as 115° Fahrenheit, according to reports, while in the 
winter the mercury descends to 40° below zero. 

In the northern part of the district with which these notes are 
concerned—that is, in the northern part of eastern Siberia—there is 
a lack of snow in the wintertime, which has a bearing on the agri¬ 
cultural development of that section. The rainfall varies from 12 
to 20 inches and is generally sufficient for crops, but there is said to 
be little precipitation during the winter months. Consequently, 
the ground freezes to a great depth and in some places it is perpetu¬ 
ally frozen at a distance below the surface. 

The Amur River basin, however, and those of its tributaries, the 
Ussuri and the Sungari, are fertile and well adapted to the raising of 
cereals. 

One of the main reasons for the slow development of Siberia has 
been the method of peopling it. Originally it was inhabited by 
nomadic tribes who lived by fishing and hunting. Then the Gov¬ 
ernment tried to open it up agriculturally by settling small detach¬ 
ments of Cossacks, who were supposed to farm allotted sections of 
land as well as to give military protection. The Government also 
shipped out convicts. This gave Siberia a bad name; it was pictured 
as a remote place of punishment, and it was difficult to persuade 
peasants to emigrate there from Russia. Another factor was the 
poor transportation. Even when the Transsiberian Railway was 


VLADIVOSTOK. 


179 


partly built it took weeks for the emigrants to get to their new homes. 
The conditions were such that it is likely the better class of emigrants 
were not induced to come. The governmental system was also a fac¬ 
tor. Emigrants could get to the United States almost as easily as to 
eastern Siberia and the promise of a free country led them westward. 

In recent years, the Russian Government adopted a broader policy 
of colonization and prior to the war was steadily settling the country 
with a good type of peasant. In addition to the agricultural settlers, 
many people have been drawn to the country by the mineral resources, 
and the outlook for Asiatic Russia has been steadily improving. 

The population of the whole of Siberia was given as only about 
11,000,000 people in 1913. In 1897 it was 5,784,382, and in 1906 it 
was estimated to be 6,740,600. In the eastern Provinces there are 
many Chinese and Koreans, as might be expected. The whole of 
Manchuria has a population of about 15,000,000, a small percentage 
of whom are Russians and Japanese, the former being found through¬ 
out the country from Chanchung north. Probably one-quarter of this 
population lives in the territory tributary to Vladivostok. 

It is not to be expected that living conditions are very good in so 
“new” a country. The people live either very well or very poorly 
and the number that live very well is not large, outside of the largest 
cities. Educational facilities in Siberia are limited and the percent¬ 
age of illiteracy is high. It is estimated that at least 85 per cent of 
the people can not read or write. Conditions are being rapidly 
bettered, however. 


PRINCIPAL BUSINESS CENTERS. 

Since only about 8 per cent of the population of Siberia is said to 
be urban, it is evident that there are not many large cities at present. 
Vladivostok, as the port city, is most important from the point of 
view of the importer. It has a population of about 38,000 and is 
rapidly growing. The mean annual temperature there is fairly low 
for its latitude, being about 40.6° F. Since the war began, Vladi¬ 
vostok has taken on a far greater importance than it had previously 
and a vast amount of tonnage has been handled through it. For the 
first six months of 1916 the imports of machinery through this port 
were approximately 38 times what they were for the whole year 1914. 
Improvements are steadily being made in harbor facilities and these 
will be ample to meet the requirements when the tonnage is more 
nearly normal again. 

Other important cities in the Russian part of the district covered 
by these notes are Blagovyeschensk (population, 37,365), Khaborovsk 
(15,082), and Nikolaievsk, all of which are situated on the Amur 
River, the last mentioned being a summer port at its mouth. Tchita 
(11,480), on the Transsiberian Railway, and Nikolskoye are other 
important centers. Nikolskoye is located at the junction of the 
present Transsiberian line and the eastern end of the new section of 
railway that has been built north and west to give Russian an all- 
Russian route for its connection with Vladivostok. While the old 
route of the Transsiberian Railway is dominated by Russia, the right 
of way is through Manchurian territory. 

Irkutsk is the largest town in eastern Siberia, with a population of 
about 149,000. In normal times it is said that its commercial rela- 


180 


ELECTRICAL GOODS. 


tions are with Russian importing centers and not with Vladivostok to 
any extent. Probably, however, it will be found feasible in the future 
for American manufacturers to serve Irkutsk through Vladivostok if 
the attempt is made and proper connections established. 

For the North Manuchuria trade, Harbin is the center. This is a 
city of about 68,000 inhabitants that has developed into importance 
since the beginning of the Russo-Japanese war. It is situated at the 
junction of the Chinese Eastern Railway with the Transsiberian line, 
the Chinese Eastern giving a route south through Mukden to Peking. 
Harbin, while in Manchuria, is within the Russian railway zone and 
under Russian control normally, and has the general appearance of a 
Russian city, though there is a large Chinese city apart from the 
main town. Several American houses have representatives at Harbin, 
who work as part of their China organizations. 

To handle trade in the territory discussed in these notes, it is 
advisable first for American companies to establish themselves in 
Vladivostok. Next, it is believed that a branch should be opened in 
Harbin. As the trade warranted it, connections could be established 
in other cities, though probably this would not be necessary for some 
time to come. Whether it will be advisable to open an office in 
Irkutsk will depend somewhat upon the class of goods sold but mainly 
upon the shipping service from the United States to Vladivostok. 

NATIONAL RESOURCES. 

Agriculture is the chief occupation of the Russian settlers in 
eastern Siberia. In the Amur River and Ussuri districts there are 
vast stretches of land that raise excellent crops of wheat and other 
grains. The methods of farming are not good, however. Manure is 
not used to fertilize the ground, it being customary to let the ground 
lie fallow for years after being cultivated for a few seasons, while the 
available fertilizer is thrown away. This does not tend to bring out 
the best in any agricultural country and great improvement is pos¬ 
sible in this regard. Often, too, the supposed settlers will rent out 
their land to Koreans or Chinese, taking their ease in the villages 
while their holdings are cultivated by the tenants. It has been 
suggested by students of Siberia that there is a greater future for 
much of this country in the grazing of cattle and in dairying than in 
the direct raising of crops. Northern Manchuria is a great wheat 
country and when farmed in a modern way will be one of the impor¬ 
tant wheat-raising centers of Asia and a big factor in the world’s 
supply. 

Great mineral resources have already been revealed in Siberia, 
but indications point to greater wealth than is known. Coal, iron, 
gold, and asbestos appear to be in greatest abundance. There are 
said to be extensive deposits of excellent steam coal within a short 
distance of Vladivostok, which should aid in the development of that 
port. It is stated that in normal times this coal should be delivered 
at Vladivostok at about 5 rubles per ton, as against 9 rubles per ton 
for Japanese coal. 

Statistics show that there are 32 coal mines operating in eastern 
Siberia, with a total force of 4,038 workmen. The labor used 
is not skilled miners but is what would be called common labor in 


VLADIVOSTOK. 181 

the United States. With such workmen it is difficult to develop 
production or to bring coal out at a fair cost per ton. 

There are large stretches of timber in the country, but lumbering 
has not been carried on to any great extent. Considerable cedar 
timber has been taken out along the Transsiberian line about 250 miles 
west of Vladivostok and exported from that port. Along the Sungari 
River, beyond Kirin, Manchuria, there has been a great deal of lum¬ 
bering. Much of the sawing is done by hand in a primitive way, but 
large steam sawmills are being established. At Kirin a Japanese 
company has recently put in operation a large plant. 

TRANSPORTATION FACILITIES. 

Development and transportation are synonymous in any country’s 
life, and nothing has retarded the exploitation of the resources of 
Siberia so much as has its lack of roads and railways. In a warmer 
climate than this, the rivers might have been of greater aid in opening 
up the interior, though of course much use has been made of tnem as 
it is. 

The present main line of the Transsiberian Railway crosses Man¬ 
churia and has greatly aided that district. Farther north, in the 
Amur River district (the Amur River is the boundary between 
Manchuria and Siberia), there was no railway until within the last 
few years. Now there is a line that leaves the main Transsiberian 
Railway near Tchita, swings northeast for some distance and then 
goes generally eastward through the Amur River basin until Khaba¬ 
rovsk is reached; from here it runs south to Vladivostok. The value 
of this construction is apparent when one considers the vast territory 
that it traverses—land that has had no other outlet except the Amur 
River to Nikolaievsk, a summer port only. 

The broad gauge of the Russian railway system permits the use of 
large-capacity and full-length box cars, and cases that can be handled 
in American cars can be handled there. The operation of the railway 
lines is not very good, however, especially at this time. 

CONDUCT OF TRADE. 

BANKING FACILITIES—TERMS OF PAYMENT. 

There are no branches of American banks in this district, the 
nearest being at Peking and Shanghai in China, and Moscow in 
Russia. The Russo-Asiatic Bank is strongly represented, and 
there are Japanese banks in both Vladivostok and Harbin. 

The usual American home terms of 30 days on shipments would 
be regarded as “cash” in Siberia; 90 days even is hardly regarded 
as credit. Both wholesalers and retailers work on large margins of 
profit and give long terms. 

A Russian manufacturer of electrical goods stated that he some¬ 
times sold apparatus on three years’ time. Fair terms were said 
by him to be one-third with order, one-third on erection, and one- 
third after a year’s service, when selling to central stations. These 
terms are believed to be necessary only under strong competitive 
conditions. 


182 


ELECTRICAL GOODS. 


German houses always extended long terms of credit and obtained 
a great deal of business on that account only, though at the same 
time they gave close attention to the small construction details that 
buyers might appreciate. 

On a recent contract for power-plant equipment, a British house 
quoted the following terms: One-third when contract was signed 
and two-thirds when equipment was delivered. A Japanese house, 
which represents large American interests, submitted a contract 
with these terms: One-third when equipment was delivered at 
power house and balance, except 10 per cent of contract sum, when 
machinery was placed in operation. The 10 per cent of the total 
was to be held by the purchaser for one year as a sort of guaranty 
fund. 

The following comment on credit conditions in Vladivostok is 
noted in the report of the American consul at that port, published 
in the Bureau’s Special Agents Series No. 62 on Foreign Credits: 

In view of the lack of money in this new country, and especially in view of the 
fact that local dealers have to extend credit to their customers, the consideration of 
a longer term of credit overbalances that of price more than that of quality. It may 
be said that because of the credit which it is necessary to extend to customers by 
importers, and as money in this country is very dear, it is desired that manufacturers 
extend such terms of credit as will enable them to receive the goods and allow for a 
turnover of at least a portion of them. It would, therefore, be very desirable if a 
standard credit for a term of at least six months could be granted to firms importing 
from America. 

In other words, American manufacturers must help the importer 
to develop the trade. The importer has to “carry” his customer; 
he is expected to be in a position to do so, and American exporters 
should aid as much as possible, after investigating the standing of 
their representatives. 

LANGUAGE—CURRENCY, WEIGHTS, AND MEASURES. 

Agents or representatives sent to Siberia should preferably be able 
to speak Russian. German will help one considerably and French 
to some extent. English also will take one through in places, but to 
do business the agent should be able to speak directly with his cus¬ 
tomer. While some Americans have done well in Siberia without 
having any knowledge of the language before arriving, it was notice¬ 
able that the better business men among them were learning to speak 
Russian as rapidly as possible. 

The ruble is the unit of currency in Russian territory, and normally 
it has a value of about 51.5 cents in American money. A kopeck is a 
hundredth of a ruble. Since the war started, however, the ruble 
has depreciated to a very serious extent, and in November, 1918, 
ruble bills were exchanged for American dollars at a rate of 10 to 1, 
instead of the normal average of somewhere near 2 to 1. The depre¬ 
ciation of the ruble has, of.course, limited the ability of the people 
to buy goods at the present time, even if a normal supply were avail¬ 
able. 

The metric system of weights and measures is used throughout 
Russia and Siberia in engineering work, and all drawings should be 
dimensioned in metric units for goods through Vladivostok. Ameri¬ 
can manufacturers have been lax in observing this, and it has handi¬ 
capped them. Not a large item in itself, the detail is nevertheless 


VLADIVOSTOK. 


183 


important, since a proposition is naturally more attractive when an 
engineer can readily “read” the drawings that are submitted to him. 

In general work the old Russian system of weights is used also, 
the unit being a pood of 36.1128 pounds, with 40 funts to a pood. 

PATENTS AND TRADE-MARKS—DUTIES. 

Patents are granted in Russia for a maximum term of 15 years, 
but if the invention is already patented in other countries the Russian 
patent will expire simultaneously with any foreign patent that runs 
for less than the full term of 15 years. Patents will not be granted 
for scientific discoveries or abstract theories. Patents also will not be 
granted if the invention has been used in Russia without a patent 
or if it has been described in print in such detail that it could be 
reproduced from the printed description. Patents will not be granted 
in the case of inventions that are known abroad without a patent 
or that are patented in a foreign conutry by a person other than the 
applicant or his assignee. Fees or taxes for patents, in addition to 
the initial fees, vary from 20 rubles for the second year to 400 rubles 
for the fifteenth year, payable annually in advance. 

Trade-marks may be registered in Russia for 1 to 10 years but 
only if the same trade-mark is registered in the country where 
the goods are manufactured. A registered mark may be canceled 
within a period of three years for cause. Trade-mark names are 
protected only in so far as a specific appearance of the name is con¬ 
cerned, so that only the imprint of the name in a certain manner is 
protected. At the present time it is not possible to register American 
trade-marks in Russia on account of the absence of a commercial 
treaty. 

Patents and trade-marks in Manchuria proper conform to condi¬ 
tions in China, which have been discussed in the report on that 
country. 

Because of the uncertain Government conditions in Russian ter¬ 
ritory, it is hardly advisable to make note here of the tariff on elec¬ 
trical goods, and it is suggested that manufacturers interested in 
exporting to eastern Siberia confer with the Division of Foreign Tariffs 
of the Bureau of Foreign and Domestic Commerce when desiring to 
obtain information as to any specific duties. 

Vladivostok itself was until 1909 a free port, but the regular 
Russian tariff is now applied in the case of many classes of imported 
goods. Duties must be paid on shipments to interior points beyond 
the boundaries of the Priamur Governor-Generalship, when goods 
have entered free at Vladivostok. Goods going to Manchurian 
cities outside of the Russian railway zone pay the regular tariff of the 
Chinese Maritime Customs. 

Prior to the war fiber switch covers used to protect knife switches 
were classed by Russian customs officials as “decorative” when they 
had the words “on” and “off” stenciled on them, taking, therefore, a 
much higher duty. Porcelain-cap rotary switches with flower or 
similar designs on the cap, such as are common in Europe, were classed 
as “art” work of some Kind and had to pay much higher duty than 
if they were entered as electrical goods. It is advisable, therefore, 
that the exporter endeavor to obtain from the buyer full information 
as to details that may cause trouble when goods are being passed 
upon by the customs officials. 


184 


ELECTRICAL GOODS. 


Another point worth noting is that Russian customs officials have 
never concerned themselves with the matter of false declaration of 
foreign goods. Foreign goods could not be entered marked so as to 
indicate their being of Russian origin, but there was nothing to pre¬ 
vent German goods from being declared as British products. 

LOCAL REPRESENTATION. 

There are few American houses in Siberia that are equipped to act 
as agents for American electrical manufacturers. In fact, there are 
few American import houses of any kind in the eastern Siberian trade. 
While foreign importers will often make good representatives for cer¬ 
tain electrical goods, such as heating appliances, dry batteries, etc., 
they can hardly be depended upon to build up a general electrical 
trade. 

One of the largest electrical manufacturers of the United States has 
recently acquired an interest in and entered into an arrangement 
with a "Russian electrical manufacturing company to act as its agent 
in lines formerly German. This local company has a branch in Vla¬ 
divostok, with a good stock in normal times, and has a strong organi¬ 
zation not only in Siberia, but in Russia as well. It should be an 
important factor in extending the use of American goods in the Sibe¬ 
rian market. 

A large American sales organization that is establishing strong 
branches throughout the Far East has recently opened an office in 
Vladivostok, though as yet it is designed merely to look after ship¬ 
ping business. 

It seems that a combination or combinations of American manu¬ 
facturers who are in a position to make among themselves a complete 
electrical line can best attack this market through the organization 
of an export company in which all are interested. They can estab¬ 
lish themselves in Vladivostok at the start, with a branch at Harbin 
possibly, and with an American staff. They should carry a stock 
and should undertake to do business as nearly as is feasible along 
lines to which the market is accustomed. 

Another method that might work out very well would be for a 
group of manufacturers to contract with some American export and 
import house to act as their exclusive agents in this territory, binding 
this house to establish an office in Vladivostok and probably Harbin, 
with provision for branches in other cities in the future. In other 
words, instead of having a joint foreign-sales department, the manu¬ 
facturers would go out and “rent” one. 

Whatever scheme is developed for the furthering of American elec¬ 
trical trade in eastern Siberia, must be based upon having an Amer¬ 
ican staff in control of the main office and organization in the country. 
Wherever foreign manufacturers have made successes in foreign 
fields, it will be found that they have had men from home in charge 
of their organiztions abroad. 

Commercial travelers and representatives in Russia are subject to 
various taxes or licenses. A foreign commercial firm or manufac¬ 
turer, not established in Russia, can employ commercial travelers 
there only upon payment of a commercial tax of 150 rubles annually. 
Commercial travelers must also take out a personal license costing 
50 rubles. There are also town and provincial taxes running from 


VLADIVOSTOK. 185 

10 to 15 per cent of the general licenses that must be paid as the 
travelers visit various districts. 

The principal of a firm is not required to take out a personal license, 
and travelers sometimes pay the commercial tax in their own name 
so as to avoid taking out a personal license. Before a traveler can 
obtain a personal license he must present a certificate issued by a 
chamber of commerce, preferably of the city in which his firm is 
located, stating generally that the bearer, Mr. A. A. Blank, is thereby 
authorized to sell goods for-etc. 

Duty must be paid on samples that are salable, but this is* re¬ 
funded if the samples are taken out of country within one year of the 
time imported. 

The Russian restrictions concerning commercial travelers have 
been the cause of some little trouble m the past, due to a lack of 
knowledge on the part of representatines sent there, as to just what 
is required of them. In view of the present conditions in Russia, it 
is suggested that it will be well to secure the latest advices possible 
before proceeding into this territory, as new rulings may be made 
from time to time. 

MANUFACTURING. 

The few factories in eastern Siberia and Manchuria consist mainly 
of flour mills, bean-oil mills, sawmills, and tanneries, with a cigarette 
factory or two. It will be years before any appreciable amount of 
manufacturing is undertaken in this part of Asia. Such power load 
as is available outside of mining will call mainly for motors of 3 to 
50 horsepower. 

Chinese and Korean labor is extensively used for rough work 
throughout eastern Siberia and northern Manchuria. It is cheap 
but not very efficient. The tendency to restrict the use of Oriental 
labor on Siberian Government works will tend to bring more Russians 
into this country, some of whom will settle there permanentlv. 

While there is no electrical manufacturing in Siberia, there are 
several large works in Russia which have the advantage of the duty 
on electrical goods over their competitors outside the country. The 
most important of these are as follows (listing the German-controlled 

g iants as such where no transfer of control is known): The General 
llectric Co. of Russia, Siemens Co., Siemens-Schuckert, The Dyna¬ 
mo Co., The Volta Co., and the Swedish General Electric Co. 

The General Electric Co. of Russia is located at Kharkof (south of 
Moscow), having moved from Riga since the war began. This com¬ 
pany was formerly dominated by the Allgemeine Elektricitats Gesell- 
schaft of Germany, but recentlv a well-known American company has 
purchased a large interest in the corporation. In its new works this 
company will employ about 4,000 men, with opportunity for expan¬ 
sion so as to work 6,000. A broad line of generators, motors, and 
railway equipment is manufactured, and supply lines are to be added. 

Siemens, at Petrograd, is allied with the German company of that 
name and has been making telephone and telegraph equipment and 
selling German accessories. Siemens-Schuckert, another branch of 
the same German organization, has works at Petrograd, with new 
works at a town farther in the central portion of the country. This 
branch made transformers and accessories, jobbing German goods in 
other lines. The Siemens plants employed several thousand men. 



186 


ELECTRICAL GOODS. 


The Dynamo Co. is one in which another large American electrical 
manufacturer is said to he interested. It employs about 1,200 men 
and makes a line of apparatus, in addition to which other lines are 
jobbed. The Volta Co. plant is about the size of the Dynamo works, 
near Helsingfors; it was said to be purely Russian. The Swedish 
General Electric Co. has new works at Nizhni Novgorod, built just 
prior to the war. This company is a branch of the large Swedish 
organization of the same name. 

The Russian electrical manufacturers have to import considerable 
of their raw material, but the protection of the tariff in the past has 
to some extent enabled them to meet competition from the outside 
in Russia proper, though in eastern Siberia, the territory covered by 
these notes, the long overland haul from Russia is said to be so ex¬ 
pensive that it is believed American manufacturers can well compete 
in normal times. 

IMPORTS OF ELECTRICAL GOODS. 

Imports of electrical goods into Vladivostok are not given in detail 
in the Russian statistics; the figures obtainable are as follows: 
Dynamos and motors, 3,997 poods in 1913, 1,355 poods in 1914, 
5,000 poods in 1915, and 37,000 poods in 1916; transformers, 395 
poods in 1913 and 164 poods in 1914; electrical apparatus, 2,681 
poods in 1913 and 1,069 poods in 1914; and electrical measuring 
instruments, 216 poods in 1914. [One pood equals 36.1128 pounds.] 

For all the Pacific ports of Russia more details are available but 
the latest figures refer to 1915. The following table shows the quan¬ 
tity and value of the imports of various kinds of electrical goods into 
the Russian Pacific ports in 1913, 1914, and 1915: 


Articles. 

1913 

1914 

1915 


Poods. 

Rubles. 

Poods. 

Rubles. 

Poods. 

Rubles. 

Accumulators. 

65 

1,856 

255 

3,970 

18 

480 

Dynamos and motors. 

Electrical apparatus, n. e. s. 

4,029 

79,745 

1,355 

32,234 

5,266 

178,116 

2,799 

76,017 

1,106 

37,641 

2,672 

132,697 

Instruments, measuring. 

223 

8,940 

216 

10,816 

315 

29,862 

Lamps, incandescent, mounted: 




Carbon filament. 

90 

9,021 

33 

3,103 

4 

981 

Metal filament. 

195 

35,307 

146 

20,650 

1,066 

224,183 

Parts: 



Coils.... 

116 

3,288 

1 

16 

2 

80 

Anchors and collectors. 

18 

246 

4 

180 

11 

415 

Beds with parts (besides plugs) of copper... 
Telegraph and telephone apparatus. 

13 

58 

200 

1,758 

50 

3,279 

661 

13 

20,475 

1,618 

Transformers. 

395 

8,295 

164 

2,666 

85 

5,750 

Total. 

8,001 

224,673 

3,330 

114,555 

10,113 

594,657 


MARKET FOR PARTICULAR KINDS OF ELECTRICAL GOODS. 

TURBINES AND ENGINES—WATER WHEELS. 

German and Swiss steam turbines have been energetically mar¬ 
keted in Siberia, and in the eastern part appear to have Held the busi¬ 
ness prior to the war. They were said to be appreciably lower in 
price than American sets and to show good reliability and operating 
efficiency. From what could be learned, it is believed American 
manufacturers can compete, however, in sizes that fit in with stand- 


























VLADIVOSTOK. 


187 


ard lines. A frequency of 50 cycles is mostly used, in accordance 
with European practice, and this fact naturally works to the advan¬ 
tage of Continental manufacturers. 

A prominent Russian central-station man criticized the methods 
of American manufacturers in the light of a recent personal experi¬ 
ence with the installation of an American steam turbine. The speci¬ 
fications called for certain accessories that were in accordance with the 
standards of the Russian Electrical Association, among them ther¬ 
mometers on the bearings. The American turbine arrived without 
these. It may have been the fault of the agents for the turbine, who 
were not Americans, hut the prestige of all American manufacturers 
suffered. The agents did the installing and the work was carelessly 
executed, according to the buyer’s engineer. The vacuum was low 
and the turbine steam consumption naturally was higher than it 
should have been. This central-station man complained, further, of 
long delay in obtaining missing parts, though he admitted that the 
local agents seemed to take very little interest in the unit after they 
had set it up. 

In northern Manchuria, where Chinese shift men are used entirely 
in the stations, there appears to be a good field for small steam tur¬ 
bines. There are several plants equipped with small American units 
that are working well and giving satisfaction. It may be remarked 
that an American engineer keeps a supervisory check on these in¬ 
stallations. 

Vertical marine-type steam engines have been built in Russia for 
some years and have had some sale. In Manchuria both English 
and Russian engines were seen. As already noted, however, there 
appears to be a better future in northern Manchuria for small tur¬ 
bines than for reciprocating engines, because the turbine type of unit 
is more foolproof when operated by Chinese station men. 

There is as yet no great development of small-town central stations 
in either Siberia or Manchuria. There should be a great future in 
the small cities of eastern Siberia, though it is hard to forecast 
whether the plants will be municipally built as a rule, or whether there 
is a chance for private companies to exploit the field. 

Altogether there does not seem to be a very promising future for 
reciprocating steam engines in this territory. 

At present there seems to be small development in the gas-engine 
line and the tendency is apparently toward crude-oil engines. In 
Russia proper Diesel engines have been used a great deal and they 
will probably be popular in Siberia as the small towns take up electric 
lighting more and more. In view of the high cost of the regular 
Diesel engine, however, it is believed that semi-Diesel type engines 
can be sold well here. Several American makes should compare well 
with a Swedish type that has been widely pushed in the Far East, and 
it is believed they can be sold readily in this territory. 

No water-power developments were encountered either in northern 
Manchuria or in eastern Siberia, and no projected works were learned 
of. There are probably some potential sites north of Vladivostok 
and in the western part of eastern Siberia, but there can hardly be 
much of a market for power as yet. When the mineral resources of 
the country are opened up on a larger scale some hydroelectric work 
will doubtless be done. 


188 


ELECTRICAL GOODS. 


GENERATORS AND SWITCHBOARDS. 

American manufacturers of direct-current generators can not com¬ 
pete in Siberia with European apparatus. In alternating-current 
apparatus, however, they can, though in these lines they will meet 
competition not only from the Continental manufacturers, but from 
Russian companies as well. The Swedish General Electric Co. 
appears to be a formidable competitor in this market, and Japanese 
manufacturers also are preparing to contest the field. Switchboard 
and switch-gear business will probably follow the generator order. 

In Vladivostok itself and within a reasonable distance thereof, and 
in northern Manchuria the chances are best for American manu¬ 
facturers. When a heavy inland freight is paid on top of the Russian 
duty, in the district outside of Vladivostok in Siberia, Russian manu¬ 
facturers will probably be able to quote prices good enough to get the 
business, providing labor conditions do not prevent. This, of course, 
applies mainly to smaller-capacity equipment. 

TRANSMISSION AND DISTRIBUTION EQUIPMENT. 

In the territory covered by this report there does not appear to be 
a near future for transmission development. What will be done will 
no doubt be in connection with the opening up of mining on a large 
scale, and it will be some time before there is any great amount of 
this class of construction. 

Distribution-line work in Siberia will tend to follow European 
practice, using brackets at the sides of the poles to carry the wires 
rather than employing cross arms. Cross arms will be used for main 
leads from power houses, but not to a great extent otherwise. Ameri¬ 
can manufacturers can sell line hardware here, but the insulator busi¬ 
ness will probably go to Japan on the basis of low prices and nearness 
to the market, not to mention superior shipping facilities. 

There will be little underground-cable construction for some time 
to come. Weatherproof wire is used for overhead construction and 
American manufacturers can do a small business in this article, 
though Japanese competition will be strong. The quality of Japanese 
weatherproof wire is not so good as that of American wire, and this 
will help to offset the lower price of the former. 

Wooden poles are not expensive in eastern Siberia under normal 
conditions, and steel poles will have little market. In northern 
Manchuria wooden poles have to be hauled longer distances, but the 
central stations can not afford the more expensive steel construction 
even if it shows a large annual saving. Chinese capital is afraid of 
large first costs. The present appeals to them more than the future, 
though settled governmental conditions and a campaign of education 
will better in some lines this fundamental tendency to buy for the day. 

There is, of course, no market for high-voltage transformers, nor 
will there be any volume of business for some time. There should be 
a fair amount of distribution-type transformer business open when 
conditions are more settled. In Siberian territory there will be fairly 
keen competition from Russian makers and it is hard to say whether 
American manufacturers can overcome the duty handicap that they 
must face in going outside of Vladivostok. In northern Manchuria 
Japanese manufacturers will probably contest the market most stub¬ 
bornly with cheap transformers. Japanese goods also get preferential 


VLADIVOSTOK. 


189 


treatment over the Japanese steamship and railway lines and this helps 
them to give good service in the Manchurian market generally. 
However, there are said to have been quite a number of cases of 
breakdown in Japanese transformers, with serious results, and this 
is setting the Manchurian central-station men to thinking on the 
question of first cost versus reliability. 

MOTORS AND CONTROLLING APPARATUS. 

With little manufacturing going on in eastern Siberia and northern 
Manchuria, it is self-evident that there is only a limited market for 
motors of any kind. There is the usual demand for small-shop 
motors, such as for cereal mills, machine shops, etc., and in the fall 
of 1917, after the country had been closed for some time except to 
imports for defense purposes, motors of any age or description were 
greatly in demand in Vladivostok. 

This market will use alternating-current motors to a larger extent 
than it will direct current. In the direct-current motor business 
that will be done, American manufacturers will hardly be able to 
compete. 

In the alternating-current field, 50 cycles appears to be the more 
general frequency in eastern Siberia, whereas in northern Manchuria 
there seems to be more 60-cycle than 50-cycle service. While there 
will be a small amount of 110 and 220 volt single-phase motor business 
open, it was said that the main demand would be for 220-volt, three- 
phase motors. 

It is believed that American alternating-current motors can develop 
a small but increasing market in the territory covered by these notes. 
They can well compete, except possibly toward the European side of 
eastern Siberia, where the combination of duty and heavy inland 
freight may be too much of a handicap. There will be considerable 
competition from Russian manufacturers, who, as noted earlier, are 
in most cases closely allied with large foreign electrical manufacturers. 

In the vicinity of Harbin there are many flour mills and bean-oil 
mills that are good prospects for power. The former will be the 
principal users of fair-sized motors, except for a few in Vladivostok. 
In Manchuria motors are being applied to driving small Chinese 
rice mills and grist mills. It was said that these Chinese power users 
must be "shown”; but when the economy and advantage of electric 
drive are proved to them, they are more quick to make a change 
than many business men of other nationalities. 

There is little opportunity for electrically driven elevators in this 
territory because few buildings are tall enough to demand elevator 
service. 

ELECTRIC-RAILWAY EQUIPMENT-HEATING AND POWER PLANTS. 

At preo^nt local transportation in eastern Siberia and northern 
Manchuria is provided mainly by droshkies and rickshaws, though 
Vladivostok has a street-railway system installed a few years ago. 
There are few cities large enough at present to support such systems. 
American, German, and British makers of railway equipment are 
normally active in the territory, and, in addition, a Russian company 
allied with American interests makes such apparatus. After the war 


190 


ELECTRICAL GOODS. 


it appears that the United States will probably have the strongest 
hold on the market. 

At present there appears to he no opportunity for electric-locomo¬ 
tive business in this territory. The probable development of the coun¬ 
try’s natural resources in the near future will bring with it a small 
demand for that class of apparatus, however. 

The climatic conditions m the Vladivostok district favor the instal¬ 
lation of isolated lighting and heating plants. However, there are 
very few as yet, because few buildings are large enough to operate 
such plants. In a small number of cases plants have been installed to 
serve a group of store buildings owned by one firm or company. 

The combination of ice-making or refrigerating plants with power 
stations is a matter of the distant future, except now and then in the 
case of an isolated meat or egg packing plant in Manchuria. 

METERS AND TESTING INSTRUMENTS-LAMPS—BATTERIES. 

With the few large central stations operating in either eastern 
Siberia or northern Manchuria, there is not much demand for testing 
meters of various kinds. The instrument market is confined chiefly 
to service watt-hour meters. Even in this type there will not be so 
great a demand as might be expected, for the reason that Manchu¬ 
rian companies will tend toward the Chinese practice of selling on a 
flat rate. 

German meters seemed to be used to the greatest extent, with some 
Swiss. American alternating-current meters, while a little higher 
priced than European makes, can sell in this market in normal times, 
it is believed. 

The lamp market prior to the war seems to have been pretty well 
supplied by German manufacturers, with a fair sale for a well-known 
Dutch product. Even as late as January, 1917, shipments of German 
lamps were being received in Vladivostok, and there were German 
lamps on sale in September, 1917, in both Harbin and Vladivostok. 
Japanese lamps, under various colors, are now taking the market 
and will give other makes fairly strong competition when normal con¬ 
ditions are restored. The variable quality of Japanese lamps and 
some prejudice against them on the part of the Russians and Chinese 
will make it difficult for Japan to retain its present standing. 

American lamps can hardly compete with Japan on a price basis 
in this territory but will have some sale on the strength of superior 
quality over lamps made in Japanese owned and controlled factories. 

There is only a small market for electric batteries in this territory. 
The small number of automobiles limits the demand for batteries 
for lighting and ignition, and the standard of living is such that few 
people use electric bells. German dry cells have had a wide sale in the 
past, but American and Japanese makes are now in the market. 
American manufacturers can compete with the Japanese without 
difficulty in both price and quality. 

In storage batteries American manufacturers can furnish the market 
at the present time in competition with Japanese manufacturers, 
but after the war it is doubtful whether they can meet German or 
British prices unless changed conditions cause the latter to rise ap¬ 
preciably above what they were before the war. In the storage- 
battery line most of the business is in ignition work, and there is 
not a great deal of that. 


VLADIVOSTOK. 


191 


FARM-LIGHTING PL.4NTS. 

When conditions are more settled, it is believed that a good agent 
with a good, foolproof system can do considerable business in farm¬ 
lighting plants. In small towns where service is not yet established 
and in outlying homes to which lines are not extended these plants 
will find favor if a thorough local sales campaign is carried on. A 
dealer familiar with the territory stated that in his opinion a system 
without battery would give the best satisfaction. He was afraid 
that a battery would cause too much trouble. A case was cited 
where he had sold a storage battery for automobile lighting. The 
battery was in good condition when installed, but a few days later 
the purchaser drove up to the store and said the battery had gone 
bad. An examination indicated that something had been done to 
the cell; when inquiry was made, the car owner admitted that when 
his lights began to get a trifle dim he had poured in some of “that 
white powder they use in batteries.” He had “charged” the battery 
with sal ammoniac. 

Unquestionably the general knowledge of such things is slight 
and possibly a system minus a battery, or with only a starting 
battery, will work out best for the local conditions. There is very 
little competition; one British company only is known to have tried 
the field, and that very slightly. 

TELEPHONE AND TELEGRAPH EQUIPMENT. 

There is a large field for telephone equipment in eastern Siberia. 
At present the development is slight and many towns of fair size 
have no telephone systems. In addition to manufacturers in Russia, 
normally in the field, an American company has close connections in 
the country, and it is doubtful whether other American telephone 
manufacturers w T ill be warranted in entering the field at the present 
time, at least. American telephone equipment generally will be 
able to compete in the market. 

Telephone-line construction employs cross arms for leads of any 
capacity. Steel pins and porcelain insulators are used. Aerial 
cable is employed in a somewhat limited way. There is an oppor¬ 
tunity for the sale of American line hardware, such as bolts, pins, 
and brackets, but not of insulators. Prior to the war these came 
from Germany to a great extent; now Japan has the insulator market 
and prices are lower than it is believed the United States can make 
with similar goods. 

In telephone cable Japan is now selling what is required for such 
construction work as is done. Engineers believe American manu¬ 
facturers can meet Japanese competition on cable, but the writer 
is doubtful on that point. There is a possibility of a good volume of 
business being open at the close of the war for the extensions neces¬ 
sary to accommodate the rapidly growing eastern Siberian cities. 

WIRING SUPPLIES AND LIGHT FIXTURES. 

There is no national society of Russian electrical engineers, and 
the standards for electrical construction throughout Russian terri¬ 
tory have been drawn up in the following manner: There are a 


192 


ELECTRICAL GOODS. 


number of technical societies made up of alumni of engineering col¬ 
leges; these societies delegate representatives to meet in conference 
and discuss technical matters. A rules committee of that confer¬ 
ence some years ago drew up a set of standards, which have been 
revised, as conditions demanded, at succeeding conferences. The 
present “Rules of Safety for Electrical Installations for Power” 
were adopted by the Fifth All-Russia Electrotechnical Conference 
in 1913. The word “power” is used to differentiate these rules 
from those for telephone and similar low-current work. The rules 
are somewhat on the order of those adopted in Germany and permit 
the use of smaller wire than is the practice in the United States. 

Bergmann-tube conduit is much used for wiring in eastern Siberia 
and in parts of Manchuria under Russian influence. In other places 
in Manchuria, open cleat work is commonest. The conduit that 
seemed to be much used is a very thin-walled brass tube lined with 
paper, with an outside diameter of | to f of an inch. Special tools 
are used in its installation and only simple elbow, sweep, tee, ell, 
outlet, and junction-box fittings are employed in the average wiring 
work. This conduit comes in 3-meter lengths (a little less than 10 
feet). Some concentric wiring has been installed. Samples of 
Bergmann tube are forwarded with this report. 

The wire that has been much employed about Vladivostok for 110- 
volt work is made with a wrapped rubber-tape insulation, braided 
over in the usual manner. Now the wire that is in the market seems 
to be in general accordance with British standards and is obtained 
from Japanese manufacturers. 

For house wiring, fuse blocks are on the general order of the 
Edison plug type, but the plug fuses often have a porcelain-clad fuse 
unit. This is made indicating, and a color scheme indicates the 
rating of the unit. This type is made for amperages from 6 to 25 for 
250 and 500 volt in medium Edison screw base. In large Edison 
base the amperages run from 6 to 60 for voltages of 250 and 500. In 
Vladivostok a midget plug cut-out and fuses were used, these being 
obtained from Denmark, whereas the others all came from Germany. 
Samples of these cut-outs and fuse plugs accompany this report. 

Switches are mainly of the rotary type, made in Germany prior to 
the war but now furnished to a great extent by Japanese manufac¬ 
turers. They are not so good as American snap switches and cost as 
much. Pendant switches of German types were seen to a small 
extent. 

Sockets are the regular screw-base type that Germany has made 
for foreign trade all over the world. They are cheap and poor but are 
in accordance with the wiring standards that have been evolved in 
this territory. Samples of sockets are being forwarded with this 
report. 

Lighting fixtures are mostly of inexpensive types, on the order of 
the old-style curved-arm and scroll-work electroliers that were form¬ 
erly popular in the United States. Three-light fixtures are common, 
and there are probably more two than four light units. Semi-indirect 
units of plain, inexpensive kinds are coming in. Wall brackets are 
of the gooseneck type, quite plain, with some use of one and two 
piece swinging brackets, similar to those used for gas lighting in the 
United States. Drop-cord lights with counterweight, similar to 


VLADIVOSTOK. 


193 


sample No. 20 accompanying the report on Australia,® are common. 
Plain white porcelain shades in flat cone shapes are used in ordinary 
work, with beaded types, similar to sample accompanying this 
report, popular for the better rooms in average homes. 

A somewhat ornate polished-brass two-light fixture, with about a 
42-inch stem and a 20-inch arm spread and with a small amount of 
scroll work at the arms, complete with keyless sockets and simple 
etched shades cost prior to the war about $4.25 f. o. b. works in Ger¬ 
many, in lots of about 100. A type of fixture consisting of a deco¬ 
rative ceiling escutcheon, from which extends downward a 3 or 4 inch 
ornamented stem with three 10-inch arms springing from this member, 
cost about $1.85 each, f. o. b. German factory, prior to the war, com¬ 
plete with keyless sockets, shade holders, and plain 5-inch frosted 
shades. A plain 12-inch, opal-bowl, ceiling-type, semi-indirect fixture, 
with plain band and ceiling fitting, and with cheap, light-chain sus¬ 
pension, cost about $1.15 each, f. o. b. German factory, before the 
war. Plain flat opal shades 10 inches in diameter, with 2-inch or 
3.75-inch depth, cost 7.15 cents each. While cheap fixtures have 
always been pushed in the past, it is believed that there is a small 
market for high-class fittings, in both the direct and the semidirect 
type, as well as for the lower-quality goods. 

DOMESTIC AND OFFICE APPLIANCES—OTHER ELECTRICAL GOODS, 

At present the largest demand for electric heating appliances lies in 
flatirons, samovars, and teakettles. The Germans seem to have 
been without much competition in this field, the only goods seen 
being by Siemens-Schuckert or the Allgemeine Elektricitats Gesell- 
schaft. The most popular type of iron was one weighing about the 
same (6 pounds) as the average American iron. A catalogue, issued 
in January, 1914, by the Allgemeine Elektricitats Gesellschaft, listed 
a 3-kilo (6.6-pound) iron, consuming 385 watts, at 12 marks, or 
about $2.86. The discount to jobbers was said to be 40 per cent. 
Electric samovars, used for heating water for tea, are naturally 
popular where tea is so extensively used. Average types run in 
capacity from 3 to 5 liters (about 3 to 5 quarts). The 3-liter size, 
consuming 660 watts, in polished brass, listed at $19.05, f. o. b. 
factory in Germany, for a voltage of either 110 or 220. The discount 
was from 30 to 40 per cent. 

American heating appliances will take well in this market and are 
believed to be a better class of goods than the competing lines, at no 
greater cost. 

Electric fans are the only other domestic or office appliances 
that are at present in much demand. These have come from Ger¬ 
many in the past. A typical sample has been forwarded with this 
report. Prior to the war a 12-inch standard desk fan of German 
make for any voltage from 60 to 230 cost $12.38, less 25 per cent, 
f. o. b. factory. 

.American fans can compete in this market, and it is believed a 
fair volume of business can be done. Japanese manufacturers will 


a Special Agents Series No. 155, Electrical Goods in Australia, which may be obtained for — cents from 
the Superintendent of Documents, Government Printing Office, Washington, D. C., or from any of the 
district or cooperative offices of the Bureau of Foreign and Domestic Commerce. 

70005°—18-13 



194 


ELECTRICAL GOODS. 


offer inferior fans at lower prices, but it is not believed that they can 
obtain any great amount of the possible trade. 

With the development of the country, there will be a growing 
demand for all the modern electrical goods and materials. Such 
things as electric signs, fire-alarm systems, and electric furnaces, 
which come with an advanced stage of electrical development, will 
begin to be marketable here at no distant date. 


APPENDIXES. 

Appendix A.—CATALOGUES. 

The following catalogues, transmitted by Trade Commissioner 
Lundquist as of interest to American manufacturers and exporters 
of electrical goods, may be seen at the New York office of the Bureau 
of Foreign and Domestic Commerce, Room 734 Customhouse: 

CHINA. 

1. Copy of Eastern Engineering. 

2. Catalogue of R. A. Lister & Co. (farm-lighting plants). 

3. Catalogue of Sterling telephone sets. 

JAPAN. 

1. Oki Electric Co., bulletin. 

2. Nippon Electric Co., catalogue. 

3. Electric Business Control Regulations (Japanese Government). 

4. Higuchi insulator catalogue, Kyoto. 

5. Shofu Porcelain Manufacturing Co., catalogue. 

6. The Japan Electric Manufacturing Co., dry-batteries catalogue. 

7. Report on Electrical Enterprises, 1916 (Japanese Government). 

8. Yamaguchi Seito-Sho & Co., catalogue of accessories. 

9. Okada Electric Co., catalogue sheet, dash light cases and cells. 

10. Shibaura Engineering Works, bulletin. 

11. Advertising folder for porcelain teapot, Japanese-made. 

12. Folder, Japanese lathes. 

13. Exporters’ Directory of Japan. 

14. Catalogue of Japanese surveying instruments. 

VLADIVOSTOK. 

1. Russian General Electric Co., catalogue. 

2. Advertising folder, Allgemeine Elektricitats Gesellschaft of Germany. 

3. Electric-teapot catalogue, Allgemeine Elektricitats Gesellschaft, of Germany. 

4. Electric-appliance folder, Allgemeine Elektricitats Gesellschaft, of Germany. 

5. Electric-appliance folder, Allgemeine Elektricitats Gesellschaft, of Germany. 

6. Electric-flatiron catalogue, Allgemeine Elektricitats Gesellschaft, of Germany. 

Appendix B.—SAMPLES. 

The following samples of electrical goods from China, Japan, and 
Vladivostok were transmitted by Trade Commissioner Lundquist and 
may be inspected at the New York office of the bureau. Local prices 
were converted at the rates current when the purchases were made, 
in the case of samples from China, and at $0.50 to the yen in the 
case of samples from Japan. Pre-war prices at Vladivostok were 
converted at the normal exchange rate for the ruble ($0,515); cur¬ 
rent quotations were converted at current rates. 

CHINA. 

Sample 1 .—Large head electric torch; Japanese make; c. i. f. Hongkong, $0.60; 
retail, $1.25. 

Sample 2 .—Round head electric torch; Japanese make; c. i. f. Hongkong, $0.55; 
retail, $1.25. 

Sample 3 .—Flat electric torch; Japanese make; c. i. f. Hongkong, $0.50; retail, $1. 

195 


196 


ELECTRICAL GOODS. 


Sample 4 .—Pendant switch; Chinese make; horn; c. i. f. Hongkong, $10.80 per 
dozen; retail, $1.25 each. 

Sample 5. —Three-way plug; Chinese make; wood; c. i. f. Hongkong, $7.80 per 
dozen; retail, $1.25 each. 

Sample 6. —Attachment plug; Chinese make; wood; c. i. f. Hongkong, $0.15 each; 
retail, $0.25 each. 

Sample 7. —Wall switch, 5-ampere, 220-volt, nonindicating, snap, B. C.; Japanese 
make; c. i. f. Hongkong, $4.75 per dozen; retail, $0.75 each. 

, Sample 8. —Japanese wire. 

Sample 9. —Roll tape, ^-inch, “oval”; Japanese make; c. i. f. Shanghai, $0.25 per 
pound. 

Sample 10. —Osram lamp, 32-candlepower, 220-volt; Japanese make; wholesale, 
$0,225; retail, $0.36. 

Sample 11. —Brilliant lamp, 32-candlepower, 220-volt; Shanghai make; wholesale, 
$0,225; retail, $0.36, 

Sample 12. —Osram lamp, 30-watt, 220-volt; British make; wholesale, $0,495; re¬ 
tail, $0.72. 

JAPAN. 

Sample 1. —Electric bell; made in Japan, in imitation of American bell; retail, 
$0.65 at Kobe. 

Sample 2. —Bell push, small wooden; retail, $0,125 each. 

Sample 8. —Shackle insulator, large; made in Japan; $0,265 each, f. o. b. Kobe. 

Sample 4 •—Ceiling rose; made in Japan; $3 per 100, f. o. b. Kobe. 

Sample 5. —Electric teapot, ^-liter; Japanese nickeled metal with cartridge unit; 
retail, complete with cord and fittings, $2.50. 

Sample 6. —Insulator pin, medium size, galvanized-iron; made in Japan for New 
Zealand trade; $0.09 each, f. o. b. Kobe. 

Sample 7. —Low-tension insulator, about 4 inches high by 3 inches in diameter, 
white porcelain; $0,042 each, f. o. b. Kobe (port of shipment). 

Sample 8. —Lead-top insulator pin for New Zealand trade; $0.15 each in January, 
1917, f. o. b. Kobe (port of shipment). 

Sample 9. —Snap switch, brass cap; Japanese, cheap imitation of American; sold to 
New Zealand importers; $0.10 each, f. o. b. Kobe. 

Sample 10. —Snap switch, composition; made in Japan for export; $0,105 each, 
f. o. b. Kobe. 

Sample 11. —Brass bayonet socket, keyless, cord-grip S. C.; made for New Zealand 
trade; $0.0825 each, f. o. b. Kobe. 

Sample 12. —Brass bayonet socket, keyless, oxidized-copper finish; made for New 
Zealand trade; $0.09 each, f. o. b. Kobe. 

Sample 13. —Dry cell, 4f by 3f by If inches; Japanese make; retail, $0.65 each, at 
Kobe. 

Samples 14 and 15. —Dry cells, round type, 5^ by 2\ inches; made in Japan; retail, 
$0,325 each, at Kobe. 

Sample 16. —Electric flatiron; made in Kyoto; wholesale, $2.25; retail, $3.50 at 
Kobe; very poor, rough casting, and poor nickel plating. 

Sample 17.— Attaching plug and receptacle; Japanese make, British type known as 
wall plug; $0.12 each, complete, f. o. b. port of Kobe. 

Sample 18. —Double cotton-covered magnet wire, No. 18 S. W. G.; made by Sumi¬ 
tomo Wire Works; in September, 1917, $0,425 per pound, small order. 

Sample 19. —Single silk-covered copper wire, No. 22 S.W.G.; made by Fujikura Co.; 
$0.72 per pound, f. o. b. port of Kobe. 

Sample 20. —Enameled wire, No. 30 S. W. G.; made by Sumitomo Wire Works; in 
September, 1917, $0,825 per pound, f. o. b. Kobe. 

Sample 21. —Shade holder, 2^-inch American type; made in Japan; $0.0215 each, 
f. o. b. port of Kobe. 

Sample 22. —Pendant-type bell push, wooden; retail, $0.20 each, at Kobe. 

Sample 23. —Friction tape, black; Japanese make for export; $0,185 per pound, f. o. b. 
port of Kobe. 

Sample 24. —Friction tape, black; Japanese make for export; $0.26 per pound, 
f. o. b. port of Kobe. 

Sample 25. —Flashlight lamp; made by small manufacturer in Tokyo. 

Sample 26. —Special types of miniature lamps (gunsight, surgical, etc.); made in 
small shop in Tokyo. 

Sample 27. —Automobile headlight lamps; made by small shop in Tokyo; retail, 
large size, $0,275 each. 

Sample 28. —Porcelain cut-out and fuse; British type; made by small shop in Osaka. 


APPENDIXES. 


197 


VLADIVOSTOK. 

Sample 1 .—Electric flatiron; made by Allgemeine Elektricitats Gesellschaft, 
Berlin. 

Sample 2. —Electric bell, midget size, wood back, metal cover, enameled-wire coils; 
claimed to be Japanese but undoubtedly German make; retail, Vladivostok, about 
$0.35 in normal times. 

Sample 3. —Keyless socket, medium, Edison; made by Allgemeine Elektricitats 
Gesellschaft, Berlin; price, f. o. b. Berlin, about $0.07 each, before the war. 

Sample 4. —Ceiling rose or rosette; German make; retail, Vladivostok, normally 
about $0.10 each. 

Sample 5. —Electric conduit (Bergmann-tube type); German make; wholesale, 
Vladivostok, before the war, $0.12 per meter. 

Sample 6. —Conduit fitting, outlet; German make; pre-war wholesale, Vladivostok, 
about $0.03. 

Sample 7.—Conduit fitting, outlet tube, porcelain; German make; wholesale, 
Vladivostok, pre-war, about $0.01 each. 

Sample 8. —-Fuse block and fuse; Danish make, under war conditions, using small- 
diameter plug fuses; wholesale, Vladivostok, now about $0.32 for cut-out and about 
$0.04 for fuses. 

Sample 9. —Plug fuse, 30-ampere, porcelain type; German make; wholesale, Vladi¬ 
vostok. pre-war, $0,055 per fuse. 

Sample 10. —Plug fuse unit for “Z” type fuse units, 60-ampere, 500-volt; German 
make; wholesale, Vladivostok, pre-war, said to be about $0.15 each. 

Sample 11. —Bead lamp shade and shade holder; German make; retail, Vladivostok, 
$0.20 to $0.25 before the war. 

Sample 12. —Keyless socket, Edison screw; German make; wholesale to jobbers, 
Harbin, about $0.07 normally. 

Sample 13 .—Key socket, Edison, screw, medium; German make; wholesale to job¬ 
bers, Harbin, about $0.12 each normally. 

Sample 14. —German-type shade holder; price to jobbers, Harbin, about $0.05 each 
normally. 

Sample 15. —Double-pole plug cut-out; Danish make. 

Sample 16. —Cartridge-type fuse plug; Danish make. 

Sample 17. —Cartridge-type fuse plug, similar to “Z” type; German make. 

Sample 18. —Fuse plug, brass cover, possible to renew; German ma^e; retail, Harbin, 
about $0.05 each normally. 

Sample 19. —Pendant switch, brass shell, cord grip holder; German make. 

Sample 20. —Brass cord grip fitting, for use with sockets and shade holders; German 
make. 

Sample 21. —Japanese wire used in eastern Siberia at present time. 

Sample 22. —Eight-inch electric fan, cast-iron body; German maKe. 

Sample 23. —Ampere-hour meters, 3.1 amperes; made in Germany. 

Sample 24. —Rotary switch, porcelain base, composition-covered; made in Germany; 
retail, Vladivostok, about $0.25 normally. 

Sample 25. —Wiring knobs used in eastern Siberia; German and Japanese makes. 

Appendix C.—TRADE LISTS. 

Lists of importers of electrical goods and power-plant equipment 
in China, Japan, and Chosen (Korea) may be obtained from the 
Bureau of Foreign and Domestic Commerce or its district or cooper¬ 
ative offices. Inquirers should refer to hie No. 40010 for China and 
to 40034 for Japan and Chosen. 


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